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moneycontrol.com | https://www.moneycontrol.com/news/business/economy/gender-budget-reaches-highest-level-since-fy11-12769288.html | Budget 2024:Gender Budget reaches highest level since FY11 | Gender budget gets a boost.Related stories. | Government spending on women centric schemes reached its highest level in over a decade in FY25, as the finance minister spent over Rs 3 lakh crore on gender budget on July 23. This is also the first time the scheme has crossed an outlay of Rs 3 lakh crore. Spending on the scheme rose from Rs 2.6 lakh crore spent on the programme in the previous year. The government had spent 5.4 percent of total expenditure on genderbudgetin FY24 and 5.2 percent in the previous year. Average spending on the scheme has been around 5 percent over the last decade. An analysis of the scheme shows that not just the quantum of spending, the quality of spend has also increased over the last decade. As spending on 100 percent women specific programmes has risen faster than other components of gender budget. The gender budget entails two kind of programmes, one where the share of women centric schemes is 100 percent, and another where share of women schemes is 30 percent. Programmes with 100 percent focus have increased a five-times increase in funding over the last decade, with introduction of programmes like Awas Yojana, which mandate that houses are registered under a woman’s name. The share of such programmes at 38.3 percent was higher in the post pandemic period (FY22 and after) compared with 21 percent in the pre-pandemic era. Further analysis byMoneycontrolshows that discounting for such big-ticket items like PMAY, 100 percent women centric schemes had witnessed a higher share of spending in the post-pandemic period, compared with the pre-pandemic period. | null | null | 2024-07-23 11:44 |
moneycontrol.com | https://www.moneycontrol.com/news/business/economy/key-government-schemes-to-watch-out-for-in-budget-2024-12775475.html | Key government schemes to watch out for in Budget 2024 | Spurring the economy.Related stories. | As Finance Minister Nirmala Sitharaman rises to table the first Union Budget of the third Narendra Modi government, she will have a big task of reviving consumption and pushing agriculture growth. Agricultural output growth was a tepid 1.4 percent in FY24 compared with 4.7 percent a year back, even as the economy roared at 8.2 percent. Consumption growth also lagged at 4 percent in FY24, with experts indicating that consumption by rural and lower-income groups has lagged.Moneycontroltakes a look at five key schemes to watch out for as the finance minister presents her seventhUnion Budgeton July 23. Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGA) A scheme to provide boost to rural consumption and supplement income, the MGNREGA spends have witnessed a hike after the pandemic. The importance of the government’s flagship job scheme launched in 2006 can be gauged by the fact that the government has been outspending on the scheme each year over the last decade compared with the initially budgeted amount. In FY24, it spent Rs 86,000 crore on Budget. Also Read:Union Budget 2024 Live updates PM-KISAN One of the first decisions of the prime minister after assuming office was to release the 17th installment of the PM-KISAN worth Rs 20,000 crore. The government now disburses Rs 6,000 a year under the scheme to eligible farmers across the country. It spent Rs 60,000 crore on the scheme in FY24. Spends on the scheme have received a jump over the last five years. PM Awas Yojana Housing has been one of the focus areas for the government with a plan to add 3 crore houses. In the Interim Budget in February, the government had extended the benefits to cover the middle class as well, but the contours of scheme were not finalised. PMAY has the benefit of displaying populism and spurring capex. The total outlay on the scheme was Rs 54,103 crore for FY24. Ayushman Bharat Health was one of the key areas of focus in the Economic Survey as well, and was one of the key indicators highlighted by economists in an MC Poll before the Budget. Pradhan Mantri Jan Aarogya Yojana of NHM has registered a 27.7 percent growth between FY19 and FY24. The scheme provides cashless and paperless benefit cover of Rs 5 lakh per annum per family on floater basis in empanelled hospitals. The PM-JAY dashboard shows that the scheme has led to 68.6 million hospital admissions, with 1.9 million admissions taking place in the previous 30 days. PM Krishi Sampada, Kisan Credit Card, Krishi Sinchayi Yojana The Economic Survey lauded the government for not tackling poverty with subsidies and doles, but by creating an enabling infrastructure. Over two-thirds of the economists in anMCpoll had noted that the government will likely push for more spends on rural economy, which accounts for only 1 percent of the GDP and less than 10 percent of the budget despite contributing 17 percent to total output. | null | null | 2024-07-23 11:23 |
moneycontrol.com | https://www.moneycontrol.com/news/business/paytm-partners-with-axis-bank-to-offer-pos-solutions-card-payment-devices-12775596.html | Paytm partners with Axis Bank to offer POS solutions, card payment devices | Paytm partners with Axis Bank to offer POS solutions, card payment devices. | Fintech firm One 97 Communications, which owns the brand Paytm, has partnered with Axis Bank to provide point of sales solutions and card payment machines to banks and its merchant network, the company said on Tuesday. Paytm's EDC devices (card machines) come equipped with an integrated software that offers complete store management services, including inventory management, invoice generation, promotions and discounts, sales tracking and reporting, CRM, etc, the company said in a regulatory filing. "By integrating our POS solutions and EDC devices (card machines) with Axis Bank's expansive merchant network, we are enhancing transaction efficiency and providing comprehensive store management services. This partnership extends our reach and strengthens customer engagement and satisfaction, ultimately supporting merchants in growing their businesses," Paytm spokesperson said. Through this partnership, Paytm expects its technology to reach a wider merchant base via Axis Bank, thereby enhancing the capabilities of both entities. For Axis Bank, this collaboration strengthens their merchant acquiring portfolio, enabling them to offer payment solutions, the filing said. "We are happy to support Paytm in the EDC business. This partnership enables us to extend our relevant business offerings to a larger base of merchants and this is an exciting milestone to build upon," Sanjeev Moghe, President & Head, Cards & Payments, Axis Bank, said. | null | null | 2024-07-23 10:59 |
moneycontrol.com | https://www.moneycontrol.com/news/business/companies/asian-paints-takes-another-price-hike-prices-increased-by-1-1-25-12775527.html | Asian Paints raises prices by 1-1.25% in latest hike | Asian Paints takes another price hike, prices increased by 1-1.25%.. | Asian Paints has implemented another price increase of 1-1.25%, according to CNBC-TV18. This marks the second price hike in just a month; the company had previously raised prices by around 1% effective July 22, 2024. Amit Syngle, MD and CEO, stated on July 18 that while the company aims to absorb some of the cost increases, a slight price adjustment is unavoidable. In the June quarter, Asian Paints reported a 7% volume growth, aligning with CNBC-TV18's forecast of 6-9%. (This is a developing story, more details to follow) | null | null | 2024-07-23 10:24 |
moneycontrol.com | https://www.moneycontrol.com/news/business/economy/budget-could-see-lower-fiscal-deficit-target-helped-by-rbis-dividend-bonanza-say-experts-12775422.html | Budget could see lower fiscal deficit target, helped by RBI's dividend bonanza, say experts | A Bloomberg survey of economist has projected that Centre will be able to bring down the fiscal deficit to 5% this year..Related stories. | The surplus dividend from RBI for FY24 is likely to be used to bring down the fiscal deficit, however if the pace of fiscal consolidation is too aggressive, it risks slowing the economy down, Axis Bank's Head of Global Research Neelkanth Mishra said in a conversation with CNBC-TV18 ahead of the Union Budget announcement. The Axis View Mishra added that it is likely that RBI's dividend for FY26 could also be well above the Rs 1.5 lakh crore figure, but it can not be assumed to be steady state revenue. The priorities this budget are likely to be the same, and the focus will be expenditure that are fiscal multipliers like infra and railways, Neelkanth Mishra said. Track the latest onUnion Budgetright hereonMoneycontrol. The Budget speech is likely to give a sign of government's broad intentions from the economy, as was highlighted in the President's address to the Parliament, Mishra said. ABloomberg surveyof economist has projected that Centre will be able to bring down the fiscal deficit to 5% this year. A strong growth of about 20 percent in net direct tax collections this fiscal is expected to find its way into rural-focused schemes. This growth is faster than the full-year estimate of 12 percent given in the interim budget. A smaller fiscal deficit can allow Centre to keep its borrowing target unchanged at Rs 14 lakh crore this fiscal year. JPMorgan View A significant revenue space has been generated by last year's austere budget and the RBI transfers, JPMorgan's head of EM economics, Jahangir Aziz told CNBC-TV18, adding that Centre may choose to bring down the fiscal deficit target for the year to 5.1 percent of GDP. Given the RBI's dividend transfer, this fiscal tightening will not be a drag on the economy. | null | null | 2024-07-23 08:51 |
moneycontrol.com | https://www.moneycontrol.com/technology/payments-companies-expect-higher-upi-subsidies-in-budget-article-12775139.html | Payments companies expect higher UPI subsidies in Budget | PhonePe, Google Pay cede online payment share to new entrants.Related stories. | As Unified Payments Interface (UPI)-based transaction continues to be grow in leaps and bounds, payment firms are pinning strong hope for a continued, rather higher subsidy to continue┬Āfacilitating┬Āthe free transactions. In order to push adoption of digital payments, the government had mandated to keep the UPI transactions free for users, and in return compensate the payment firms for the cost they bear to facilitate the same. These subsidies come via the Payments Infrastructure Development Fund (PIDF) that finds mention in the Budget every year along with certain separate allocation for promoting RuPay and UPI transaction. In Interim UnionBudget 2024, the┬Ā government had approved the┬Āproposal for the continuation of the incentive scheme┬Āwith a financial outlay of Rs 3,500┬Ācrores for both small-value UPI transactions and for Rupay-BHIM transactions. However, as the popularity of UPI picks up pace with each passing day with jump in both volume and value, the stakeholders, including payment aggregators, UPI apps and banks, are hoping for an enhanced reimbursement. In May,UPI set another recordas it processed more than 14 billion transactions worth Rs 20.45 lakh crore or Rs 20.45 trillion, according to data issued by the National Payments Corporation of India (NPCI). The payment method saw a 5 percent jump in volume and a 4 percent surge in value of transactions in May compared to April. This is a new high in terms of volume and value for UPI which began its operations in April 2016. ŌĆ£The government should provide a┬Āsubsidy┬Āon merchant discount rate (MDR) for UPI and RuPay Debit card transactions to make the business model more viable for industry players. This will support the expansion and deep penetration of digital payments across India especially in rural areas,ŌĆØ said Rahul Jain ŌĆō CFO, NTT DATA Payment Services India. A PwC report notes that stakeholders (including payerŌĆÖs bank, beneficiaryŌĆÖs bank and UPI app provider, and NPCI) typically incur a cost of nearly 0.25 percent of transaction value for processing a UPI P2M (person-to-merchant) transaction. "This means that they incurred a cost of about Rs 12,000 crores for such transactions for FY23ŌĆō24 (assuming a flat average MDR rate of 0.25%). However, due to zero MDR, they are not able to recover the costs, and the same needs to be reimbursed to them through such incentives," the report notes. In comparison to the cost, Rs 3,500 crore of subsidy seems inadequate, industry players echo. Some have also been pitching to start charging a minimal fee, also known as MDR, on┬Āthese transactions, in phases--opening a monetisation opportunity for them. The ŌĆśno MDR on UPIŌĆÖ policy has sparked┬Ādebate┬Āamong stakeholders on several occasions in the past. MDR is typically a fee that banks and payment service providers charge merchants for facilitating digital transactions. This fee further gets passed on to the customers. In August 2022, the RBI had floated a discussion paper on regulating various payment system-related charges, including MDR on UPI transactions. The regulator was of the opinion that the cost had to either be passed on to the merchant as MDR or to the customer as a transaction fee. The heated debate, however, pushed the Union Ministry of Finance to clarify its stance, stating that there was no plan to levy any charges for UPI services. ŌĆ£The government should look at charging for digital payments like UPI which will allow banks to build robust payment infrastructure and security standards enabling fast, simple and secure payments while protecting consumers from frauds and cybersecurity threats,ŌĆØ said V Balasubramanian, CEO, Financial Software and Systems. | null | null | 2024-07-23 07:46 |
moneycontrol.com | https://www.moneycontrol.com/news/business/phonepe-google-pay-cede-online-payment-share-to-new-entrants-12775348.html | PhonePe, Google Pay cede online payment share to new entrants | PhonePe, Google Pay cede online payment share to new entrants.Related stories. | Walmart Inc.-owned PhonePe and Alphabet Inc.’s Google Pay saw a marginal decline in their share of total transactions processed through India’s unified payments interface in June as smaller players gained traction. PhonePe’s share in total UPI transactions dropped to 48.37% from 48.67% in May. Google Pay’s portion shrunk to 36.76% from 37.18% in the previous month, according to data released by the National Payments Corporation of India. Overall, the UPI network processed 13.88 billion transactions in June, a 1% drop over the prior month. Operated by state-backed NPCI, UPI is a system that allows users to make instant money transfers by linking banks with fintech apps such as Paytm, PhonePe and Google Pay. The UPI payments space has seen an influx of new players in recent times. The entrants are challenging the dominance of PhonePe and Google Pay, which control more than 80% share of the market. For instance, UPI transactions on Axis Bank Ltd.’s apps grew 17% to 75 million in June, while the Navi app saw a 20% increase to 35.7 million transactions. Additionally, Flipkart, the Indian e-commerce giant and PhonePe’s sister company, launched a separate UPI payments service called super.money. Mukesh Ambani’s Jio Financial Services also entered the fray with its JioFinance app to tap into India’s burgeoning fintech ecosystem. Reeling under regulatory setback, Paytm retained its 8% share from last month, signaling a halt in market erosion from 13% at the start of the year. Paytm’s net loss for the fiscal first quarter through June more than doubled to 8.39 billion rupees ($100 million) after the Reserve Bank of India earlier this year ordered a near-shutdown of its banking affiliate. | null | null | 2024-07-23 06:35 |
moneycontrol.com | https://www.moneycontrol.com/news/business/byjus-lawyers-blame-client-in-bid-to-quit-us-bankruptcy-case-12775347.html | Byju’s lawyers blame client in bid to quit US bankruptcy case | Byju’s lawyers blame client in bid to quit US bankruptcy case. | US lawyers for units of the troubled Indian tech firm Byju’s want to quit defending their clients in a bankruptcy dispute, blaming “an irreparable breakdown” with the companies and a board member accused of lying in court to help hide $533 million from disgruntled lenders. In an unusual move, two law firms representing Riju Ravindran, brother of Byju’s founder, filed papers Friday in federal court in Wilmington, Delaware, claiming their clients have failed to cooperate in their own defense. Lawyers representing Byju’s ally William C. Morton, the founder of a small Florida hedge fund, also sought court permission to quit. Representatives for Byju’s and Morton didn’t immediately respond to a request for comment. For months, lenders have been trying to find $533 million in cash that Ravindran allegedly moved out of the US, according to court documents. US Bankruptcy Judge John Dorsey held Ravindran in contempt of court for refusing to help track down the money. The missing money is at the heart of a dispute between lenders owed $1.2 billion and the startup founded by entrepreneur Byju Raveendran. The education-tech company’s official name is Think & Learn Pvt. The cash belongs to a bankrupt shell company, Byju’s Alpha Inc., which is affiliated with Think & Learn and was taken over by the lenders after their loan defaulted. | null | null | 2024-07-23 06:32 |
moneycontrol.com | https://www.moneycontrol.com/news/business/economy/india-to-ease-borrowing-investment-rules-for-state-firms-12775346.html | India to ease borrowing, investment rules for state firms | India to ease borrowing, investment rules for state firms.Related stories. | India plans to remove some restrictions on its state-owned companies, including allowing them to borrow and invest without seeking the permission of the government, according to people with knowledge of the matter. Prime Minister Narendra Modi wants to make it easier for these firms to diversify into new markets and boost manufacturing, thereby helping him create jobs and lower imports, the people said, asking not to be identified before a formal announcement. The proposal may be announced as early as Tuesday, when India presents its annualbudget. A spokesperson for the Finance Ministry didn’t respond to a request seeking comment. The expected overhaul will add to corporate governance reforms enacted by Modi’s administration, which have led to increased dividend payouts by state-run firms and helped deliver six straight quarters of better-than-estimated earnings. After attempts to sell stakes in these companies yielded little success, the government has sought to focus inward and weed out practices that have hindered competitiveness. Some of the changes proposed include: Reduce size of board of directors to help reduce costs Create more classification categories: ‘maharatna’, ‘navratna’, ‘miniratna’, profit-making and others Mandatory listing of shares for all categories as against current mandate for companies under ‘maharatna’ category As much as 25% lateral recruitment across all categories | null | null | 2024-07-23 06:29 |
moneycontrol.com | https://www.moneycontrol.com/news/business/economy/fm-nirmala-sitharaman-to-present-union-budget-2024-25-on-july-23-12775165.html | FM Sitharaman to present full Budget on Tuesday as Modi 3.0 aims to strike the right balance | Since coming back to power, Modi 3.0 has announced measures revolving around rural focus and infrastructure including an additional 3 crore houses under PM Awas Yojana, PM Kisan installment, etc..Related stories. | Finance Minister Nirmala Sitharaman will present the Union Budget for 2024-25 on July 23 amid a realistic GDP growth estimate of 6.5-7 percent laid out by the Economic Survey. Sitharaman will present the Union Budget at 11 am in the Parliament. This will be her 7thUnion Budget. The Budget is likely to keep its focus on the revival of the rural economy, agriculture, MSMEs, and boosting consumption. The Economic Survey has outlined expanding MSMEs as one of the key areas for growth in Amrit Kaal. Prioritising the growth and expansion of India’s MSMEs (Micro, Small, and Medium Enterprises) is highlighted as a strategic priority, recognising their significant role in the economy. The Budget is expected to provide support to the productive sectors of the economy, by finding a fine balance between supporting investment and consumption. With the recovery in rural consumption still sluggish, the agriculture sector is hoping the upcoming Budget will have measures to bolster rural infrastructure. A major pain point for the agriculture industry has been inflation, which is adding to the woes arising from climate change. To ease the problem, the government may announce incentives for key crops to boost farmers' incomes, while also dealing with the persistent issue of food inflation. ALSO READ:Union Budget 2024 Live Updates The Economic Survey said that a delicate balance is needed between consumers and farmers even while rolling out price stabilisation measures, and the export bans should be invoked only under exceptional circumstances. The survey presented says that farmers should be allowed to benefit from higher international prices and any bans on food export need to be telegraphed in advance lest hunger and famine elsewhere in the world worsen. Since coming back to power, Modi 3.0 has announced measures revolving around rural focus and infrastructure including an additional 3 crore houses under PM Awas Yojana, PM Kisan installment, etc. | null | null | 2024-07-22 23:05 |
moneycontrol.com | https://www.moneycontrol.com/news/business/companies/kv-subramanian-appointed-as-md-ceo-of-federal-bank-for-three-years-12775223.html | KVS Manian appointed as MD & CEO of Federal Bank for three years | Krishnan Venkat Subramanian was the Joint Managing Director of Kotak Mahindra Bank Limited till April 30, 2024, spearheading Corporate, Banking, Commercial banking, Private Banking and Asset Reconstruction business.Related stories. | The Reserve Bank of India (RBI) on Monday approved the appointment of Krishnan Venkat Subramanian as the Managing Director & Chief Executive Officer of the Federal Bank. In an exchange filing Federal Bank said, "We wish to inform you that, based on our application made to the Reserve Bank of India (“RBI”) on May 06, 2024, for its approval for the new Managing Director & Chief Executive Officer of the Bank, the RBI has, vide its letter dated July 22, 2024, approved the appointment of Krishnan Venkat Subramanian as the Managing Director & Chief Executive Officer of the Bank under Section 35B of the Banking Regulation Act, 2013, for a period of 3 (three) years, with effect from September 23, 2024, after the expiry of the term of the current Managing Director & CEO on September 22, 2024". Krishnan Venkat Subramanian was the Joint Managing Director of Kotak Mahindra Bank Limited till April 30, 2024, spearheading Corporate, Banking, Commercial banking, Private Banking, and Asset Reconstruction businesses and was responsible for building a high-quality integrated, and profitable franchise across these businesses. He has also been instrumental in upgrading the technology in these businesses and in building strong transaction banking capabilities. He also oversees the Investmentbanking and Institutional Equities business. The Investment Banking, Institutional Equities, and Private Banking businesses continue to maintain and improve their leadership positions in the industry. Prior to this assignment, he was the Head of the Consumer Bank with the bank and was instrumental in the early period of setting up the Consumer Bank from 2003 to 2014. His experience before that was in the NBFC (then called Kotak Mahindra Finance Ltd) and in the Investment Banking area. He is an electrical engineer from the Indian Institute of Technology (BHU) - Varanasi, Post Graduate in Financial Management from Jamnalal Bajaj Institute of Management Studies Mumbai, and a Cost and Works Accountant. | null | null | 2024-07-22 22:29 |
moneycontrol.com | https://www.moneycontrol.com/news/business/economy/interview-identify-sectors-that-can-boost-indian-exports-with-chinese-fdi-says-cea-nageswaran-12775208.html | Interview: Identify sectors that can boost Indian exports with Chinese FDI, says CEA Nageswaran | Chief Economic Adviser V Anantha Nageswaran.Related stories. | India needs to identify sectors wherein foreign direct investment (FDI) from China could work as a better strategy to boost exports, Chief Economic Adviser V Anantha Nageswaran said in an interview to Moneycontrol. ŌĆ£I am not saying prefer one over another. What I am saying is if there are areas where FDI can lead to better outcome than higher imports, we are anyway importing from China, and we have a large trade deficit with them, so we need to understand which strategy could work better for which sectors,ŌĆØ Nageswaran said on July 22. On whether India would require to ease FDI norms in a bid to implement this idea, Nageswaran said that is the governmentŌĆÖs call. In order to curb opportunistic takeovers or acquisitions of Indian companies, the Centre amended the FDI policy, specifically Press Note 3, April 2020. Under the new rule, an entity of a country, sharing land border with India or where the beneficial owner of an investment in India is situated in or is a citizen of any such country, can invest only under the government route. These amended rules under Press Note 3 came into force from April 22, 2020, increased scrutiny over FDI from China as well. Nageswaran added that "India needs to see whether in certain sectors rather than importing goods from China, it will help us if we go the capital route." TheEconomic Survey for 2023-24said that India needs to strike the right balance between goods and capital imports from China, highlighting how the country can take advantage of the China-plus-one strategy. As the US and Europe are shifting their immediate sourcing away from China, it is more effective to have Chinese companies invest in India and then export the products to these and then export the products to these markets rather than importing from China, adding minimal value, and then re-exporting them, the survey added. Nageswaran added that this may be a strategy worth exploring given IndiaŌĆÖs widening trade deficit with China. IndiaŌĆÖs trade gap with Beijing widened to $85 billion in the previous fiscal from $83.2 billion in 2022-23. Weighing in on falling FDI flows into the country, the chief economic adviser said that this decline is not a sign of decreasing interests among investors. Most of the fall in FDI inflows is due to repatriation, which basically means many private equity investors took advantage of buoyant equity markets in India and exited profitably, he added. Net FDI inflows to India declined from $42.0 billion during FY23 to $26.5 billion in FY24. However, in gross terms the moderation was by only 0.6 per cent in the previous fiscal year. Commenting on the Survey's growth outlook for FY25 which is in the range of 6.5-7 percent, Nageswaran said given that growth is an outcome of policies, the focus now needs to shift to the grunt work required to maintain economic buoyancy, from attracting higher investments to streamlining duties. On the suggestion in the survey pitching for a relook at IndiaŌĆÖs inflation targeting framework, Nageswaran said "it is an idea that has been thrown up." ŌĆ£We have to react to changes in food prices instantly, be it in export bans or other measures," he said, adding that given such a scenario it is a discussion that the Survey intends to open up on the the monetary policy committeeŌĆÖs mandate to target consumer price index-based inflation. The Reserve Bank of India targets a consumer price index (CPI)-based inflation with a mandate of keeping the rate at 4 percent along with a tolerance band of 2 percentage points on either side. The Survey goes a step further and talks about how social media, screen time, sedentary habits, and unhealthy food are a lethal mix that can undermine public health and productivity and diminish IndiaŌĆÖs economic potential. Responding to a question on what prompted the chief economic adviser to highlight these issues, Nageswaran said, that the time was right to flag them given that it poses significant challenges for the health and employability of India's youth. | null | null | 2024-07-22 22:04 |
moneycontrol.com | https://www.moneycontrol.com/news/business/markets/wall-st-opens-higher-as-investors-assess-us-election-after-biden-exit-12775154.html | Wall St picks up after sell-off as investors weigh Biden exit effect; Nasdaq rises 1% | Wall St opens higher as investors assess US election after Biden exit. | Wall Street stocks opened higher early Monday as tech shares bounced back after a recent pullback, as investors looked ahead to major earnings and economic data due this week. The US presidential race had produced a surprise over the weekend with Joe Biden bowing out of the race and throwing support to Vice President Kamala Harris. "We had, of course, enormous political news. But I don't know that that's really what's driving things right now," said Steve Sosnick of Interactive Brokers. "I think this is some bargain hunting after a rough week." About 15 minutes into trading, the Dow Jones Industrial Average was up 0.2 percent at 40,357.10. The broad-based S&P 500 gained 1.0 percent to 5,557.17, while the tech-rich Nasdaq Composite Index gained 1.5 percent to 17,985.79. Among individual companies Delta Air Lines slumped 3.6 percent as it continued to be plagued by a major IT outage connected to a flawed update to an antivirus program from American cybersecurity group CrowdStrike. Delta canceled more than 660 flights on Monday, according to tracker FlightAware. Rivals American Airlines and United Airlines fell just over one percent, while CrowdStrike plummeted nearly 10 percent. This week's earnings calendar includes reports from Google parent Alphabet, General Motors and Coca-Cola, while the economic releases include personal consumption pricing data. | null | null | 2024-07-22 19:49 |
moneycontrol.com | https://www.moneycontrol.com/news/business/companies/ahead-of-ipo-swiggy-hires-reliance-retail-amazon-execs-for-next-phase-of-growth-12775131.html | Ahead of IPO, Swiggy hires Flipkart, Amazon execs for next phase of growth | In April this year, the food tech giant received nod from shareholders for a $1.2-billion initial public offering (IPO), according to regulatory filings with the registrar of companies (RoC)..Related stories. | Quick commerce and food delivery firm Swiggy on July 22 announced new appointments at senior levels to strengthen its leadership team, underlying the growing importance of quick commerce and Swiggy Instamart. The company has appointed Himavant Srikrishna Kurnala as the senior vice president (SVP) and head of product at Swiggy Instamart. Himavant worked previously at Reliance Retail, where he held the position of chief product officer for JioMart, according to the company statement, adding that he was responsible for overseeing product, program, design, analytics, and marketplace trust functions. He has a career spanning over 20 years with experiences at various companies, including Amazon, Microsoft, and Reliance. Swiggy has also appointed Mayank Rajvaidya as the vice president of fruits and vegetables, which is a crucial category for the quick commerce arm of the company. Rajvaidya too comes with nearly 20 years of experience in category management and operations, and has led Amazon’s consumables private brands in India. He was also behind the launch and the expansion of Amazon Pantry to more than 300 cities, the statement said. “His expertise will elevate Swiggy Instamart’s trajectory in the fresh produce segment,” Swiggy said. In other appointments, Manu Sasidharan, who has over 12 years of experience in the e-commerce sector, has joined the company as an associate vice president of the firm’s FMCG segment, He was previously with Flipkart and Cleartrip. Moreover, Kumar Rahul, the new AVP of business development has joined Lynk by Swiggy and brings over 14 years of experience in digital transformation, marketing, and e-commerce. He has previously worked with companies like Google, Disney+Hotstar, and Flipkart, Swiggy said. Girish Menon, head of HR at Swiggy, said, "Businesses across Swiggy are growing positively, continually adding new categories and use cases for our consumers. We are thrilled to welcome leaders like Himavant, Mayank, Manu and Rahul whose experience in scaling and managing largeorganizations will be invaluable as we enter the next growth phase.” In April this year, thefood tech giant received nod from shareholdersfor a $1.2-billion initial public offering (IPO), according to regulatory filings with the registrar of companies (RoC). The Bengaluru-based company plans to raise up to Rs 3,750 crore (around $450 million) through a fresh issue and up to Rs 6,664 crore (around $800 million) as an offer-for-sale (OFS) component, the filings further showed. Meanwhile,Economic Timeson July 22 reported that Amazon Indiahas approached Swiggy for a potential deal involving its quick commerce arm Instamart. “Amazon has shown interest in either acquiring a stake during the ongoing pre-IPO placement or proposing a buyout for Instamart. However, multiple roadblocks exist at the moment,” a source toldET. Disclosure:Moneycontrol is a part of the Network18 group. Network18 is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary. | null | null | 2024-07-22 19:32 |
moneycontrol.com | https://www.moneycontrol.com/news/business/economy/economic-survey-in-10-charts-stability-inclusivity-central-to-2047-viksit-bharat-vision-12774918.html | Economic Survey in 10 charts: Stability, inclusivity central to 2047 Viksit Bharat vision | Economic Survey in 10 charts.Related stories. | The Economic Survey 2023-24 took a more conservative stance in its projections than many international agencies, pinning GDP growth at 6.5-7 percent for FY25. It emphasised the need for more structural reforms to accelerate sustained growth to more than 7 percent. The survey suggested measures to contain inflation, highlighting that it is likely to be benign in the short run. Moneycontrol decodes the survey in 10 charts and excerpts from the survey: India’s economy, according to the survey, carried forward the momentum in FY24 despite several external challenges. It said growth could exceed 7 percent on a sustained basis if structural reforms continue. Achieving long-term price stability requires a clear, forward-looking vision, the survey said. It's important to assess progress in developing modern storage and processing facilities for fruits and vegetables to check price volatility, it added. The survey underlined the need to generate 7.9 million jobs per year until 2030. The government has implemented measures to boost employment, foster self-employment and promote worker welfare, it noted. A report by the World Bank Group's International Finance Corporation acknowledged India’s efforts to achieve committedclimate goals, highlighting that it is the only G20 nation on trackto meet targets that aim to limit global warming to2 degrees centigrade, the survey pointed out. The survey noted that the country has adopted a mission mode approach to climate change. It also highlighted the extension of the free foodgrain scheme to about 81.35 crore beneficiaries for a further period of five years, along with the need to push for agricultural policies to increase incomes. The survey lauded efforts on financial inclusion using schemes such as direct benefit transfers and Jan Dhan Yojana. The financial inclusion strategy in the country has emphasised the usage of bank accounts by enhancing direct benefit transfer flows through these accounts and promoting digital payments using RuPay cards, UPI, etc, it said. “Growth has been inclusive with a reduction in unemployment and multi-dimensional poverty and an increase in labour force participation. Overall, the Indian economy looks forward to FY25 optimistically, anticipating broad-based and inclusive growth,” the survey said. Global capability centres (GCCs) in India have grown from little over 1,000 in FY15 to more than 1,580 by FY23. “Upskilling through government and industry collaboration can enable India to become a high-value partner in areas such as cybersecurity, enterprise management, and other specialised areas,” according to the survey. Globally, India’s services exports constituted 4.4 percent of the world’s commercial services exports in 2022, the survey noted, pointing out that growth has continued post-pandemic. “Given that infrastructure-creation efforts in India are currently predominantly public sector-led, a higher level of private sector financing and resource mobilisation from new sources will be crucial for India to continue down the path of building quality infrastructure,” the survey said. | null | null | 2024-07-22 19:30 |
moneycontrol.com | https://www.moneycontrol.com/news/business/markets/gold-rises-rs-100-to-rs-75650-per-10-grams-amid-firm-global-cues-12775138.html | Gold rises Rs 100 to Rs 75,650 per 10 grams amid firm global cues | Gold rises Rs 100 to Rs 75,650 per 10 grams amid firm global cues.Related stories. | Gold prices rose by Rs 100 to Rs 75,650 per 10 grams in the national capital on Monday on increased buying by jewellers amid a firm global trend. However, silver prices plunged by Rs 600 to Rs 91,000 per kg. In the previous session, it had settled at Rs 91,600 per kg, as per the All India Sarafa Association. On Saturday, the precious metal rates had closed at Rs 75,550 per 10 grams. Meanwhile, gold of 99.5 per cent purity also rose by Rs 100 to Rs 75,300 per 10 grams. It had ended at Rs 75,200 per 10 grams in the previous session. Traders attributed the rise in gold prices to fresh demand by local jewellers and a firm trend in the international markets. The white metal has declined Rs 3,400 per kg in the past four sessions since July 18 when it had fallen by Rs 400 to end at Rs 94,000 per kg. Globally, Comex gold is trading higher at USD 2,453.60 per ounce, up by USD 6.80 per ounce from the previous close. "After a sharp pullback from all-time highs last week, Comex gold edged higher on Monday as US election uncertainty weighed on US dollar and treasury yields," Kaynat Chainwala, AVP of Commodity Research at Kotak Securities, said. President Joe Biden's decision to end his re-election campaign and endorse Vice President Kamala Harris prompted speculation on whether it would benefit or hinder chances of former President Donald Trump returning to the White House. As a result, the bulls of the US dollar remained cautious and the commodity prices gained some traction. Traders are now eagerly anticipating the release of several key economic indicators ahead of the Federal Open Market Committee (FOMC) policy decision next week, Chainwala added. However, silver was down at USD 29.21 per ounce in New York. "Gold is taking support around USD 2,400 on Monday at the fresh start of the week, with a focus on theUnion Budgeton Tuesday. "The commodity market expects measures to encourage the export of Indian jewellery and keep gold prices lower, possibly by reducing import tax on raw gold or export tax on finished gold goods," Jateen Trivedi, VP Research Analyst of Commodity and Currency at LKP Securities, said. Additionally, lowering the Commodity Transaction Tax (CTT) on derivatives is needed to boost participation, Trivedi added. According to commodity market experts, traders also worried about slowing Chinese economic growth, geopolitical risks from the Russia-Ukraine war and the ongoing conflicts in the Middle East will benefit the safe-haven asset. Further, traders are awaiting the upcoming release of the US Personal Consumption Expenditures (PCE) price index data on Friday for more cues about the US Federal Reserve's monetary policy path, which will provide directions for the bullion prices in the near future, they said. "Traders also believe that the short-term trend for the bullion prices will remain volatile amid mixed global cues," Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities, said. | null | null | 2024-07-22 19:05 |
moneycontrol.com | https://www.moneycontrol.com/news/business/economy/statistics-quality-an-underlying-theme-of-the-survey-12775088.html | Statistics quality an underlying theme of the survey | Relooking data from stats ministry.Related stories. | Amidst a focus on sustaining economic growth, controlling inflation and boosting exports, the Economic Survey also has an undercurrent on emphasising data quality and improving the country’s statistical system. “The government is taking many steps aimed at strengthening administrative and survey statistics, building capacities and improving data quality and timeliness,” the survey noted. The survey highlighted the need to update the base year of important indicators like the gross domestic product, Consumer Price Index and the Index of Industrial Production, which are used to estimate economic growth, inflation and production, but also argued for integration of other databases to help in decision-making. For instance, in the case of essential commodities, the survey stressed the need to link databases in such a way that the government could track any build-up in prices. On the goods and services tax front, the survey pointed out that granular data could help the government get a handle on the health of businesses. “There is also a need to have a regular mechanism to aggregate the financial flows to infrastructure and physical progress—sectorally and geographically differentiated—achieved in different infrastructure sectors, at least on an annual basis,” it said. Moreover, it underlined the need for state-level data on indices like the IIP. The approach to data already builds on existing efforts by Ministry of Statistics and Programme Implementation (MoSPI) to fast-track release of reports like the Annual Survey of Unincorporated Sector Enterprises and Annual Survey of Industries. “Survey data to help understand private sector capital formation at regular intervals will also help policy formulation,” it said. Moneycontrol had earlier reported that the ministry was also looking to increase the frequency of data like the urban unemployment numbers from the periodic labour force survey, which at present is released quarterly, and rural unemployment, which has an annual release calendar. “To encourage greater use of administrative data, a National Metadata Structure is also being developed. The Unified Data Portal project has been envisaged by MoSPI with the objective of creating a centralised database and storage system,” the survey noted. | null | null | 2024-07-22 18:53 |
moneycontrol.com | https://www.moneycontrol.com/news/business/economy/understanding-india-from-the-economic-survey-2023-24-12775124.html | Understanding India from the Economic Survey 2023-24 | The Chief Economic Advisor, V Anantha Nageswaran, in his second Economic Survey 2023-24 presentation, steered clear of presenting overly optimistic forecasts for the Indian economy.Related stories. | India’s economy has shown resilience amid a global slowdown, with theEconomic Surveyprojecting a conservative growth outlook of 6.5-7 percent for FY25. While the survey calls upon the private sector to create jobs and boost investments, it also emphasises the need for the government to “let go” or more deregulation. The Chief Economic Advisor,V Anantha Nageswaran, in his second Economic Survey 2023-24 presentation, steered clear of presenting overly optimistic forecasts for the Indian economy. He used the survey as an opportunity to highlight the wins for India, including increasing participation of women in the workforce, reduced out-of-pocket expenses in healthcare, increased enrolment in schools, etc., even as he emphasised the need for building climate resilience, for the private sector to step up investment and to work to minimise the presence of the government. Here are some highlights from the survey on India’s macro economy, capital expenditure, state finances, jobs, welfare, education and health. Macro economy-Steady growth India has remained on course to meet fiscal consolidation goals despite the global trend of widening fiscal deficit. India’s favourable fiscal performance in 2023 emerged as the cornerstone of India’s macroeconomic stability. The fiscal deficit of the Union Government is down from 6.4 percent of GDP in FY23 to 5.6 percent of GDP in FY24. Increased robustness in tax revenues plus higher thanbudgeted non-tax revenues in the form of dividends from RBI has buffeted revenue receipts. Sustained improvements in India’s fiscal metrics are beginning to have an impact on India’s credit ratings. For the first time in 13 years, S&P Global upgraded India’s credit rating outlook from stable to positive in May 2024. Capital Expenditure- Government takes the lead Consistent focus on capital expenditure has lifted the productive potential of the economy. The capex for FY24 stood at Rs9.5 lakh crore, an increase of 28.2 percent from a year earlier and 2.8 times the level of FY20. Focus on capex has been broad-based across sectors such as road transport, highways, transport, railways, and defence services. However, much of the capex has been driven by the government, and the private sector’s share has not kept pace. Between FY19 and FY23, the share of private non-financial corporations in overall GFCF (gross fixed capital formation) increased by only 0.8 percentage points from 34.1 percent to 34.9 percent. State Finances- Fiscal prudence State governments have continued to improve their finances in FY24. A study by the Comptroller and Auditor General of India on estimates of finances for 23 states show that gross fiscal deficit of these 23 states was 8.6 percent lower than the budgeted Rs 9.1 lakh crore. Implying that fiscal deficit as a percent of GDP for these states came in at 2.8 percent as against a budgeted 3.1 percent. The quality of spending by state governments has improved too, with states focusing on capex as well. Redefining Welfare India’s social welfare approach has shifted from an input-based approach to outcome-based empowerment. Several schemes,, such as free gas connections, PM Ujjwala Yojana,and building toilets,c., have improved capabilities and enhanced opportunities for the underprivileged. Jobs: Rural Women show the way According to the Periodic Labour Force Survey, the all-India unemployment rate has been declining since the pandemic. This has been accompanied by a rise in the labour force participation rate and worker-to-population ratio. Female labour force participation has been rising for six years- from 23.3 percent in 2017-18 to 37 percent in 2022-23, driven by the rising participation of rural women. How India borrows Growth in credit to agriculture and allied activities was in double digits during FY 24. Agricultural credit had increased nearly 1.5 times from 13.3 lakh cr in FY 21 to Rs 20.7 lakh cr in FY 24. The survey notes that the Kisan Credit card scheme has been pivotal in providing timely credit to farmers. It also highlighted that bank credit disbursal to the services sector remained resilient despite a slowdown in credit growth to NBFCs. Personal loans and NBFCs have the largest share of credit disbursed by banks. Within personal loans, home loan growth remained range-bound during FY24. Credit disbursal for home loans increased from Rs 19.9 lakh crore in March 2023 to Rs 27.2 lakh crore in March 2024. Microfinance-The Indian Way Globally, the Indian microfinance sector is the second largest after China in terms of number of borrowing customers in India. The Indian microfinance coverage is more than 50 percent of households and 10 per cent of the Indian population. Microfinance is mostly a women-focused activity, with women constituting 98% of the total clients of the lenders. Inflation The RBI and IMF have projected that consumer price inflation will align towards the inflation target in FY26, assuming a normal monsoon and no further policy shocks. The RBI expects headline inflation to be 4.5 percent in FY25 and 4.1 percent in FY26. The short-term inflation outlook for India is benign. However, domestic consumption of edible oils has been increasing faster than production, increasing import dependence. To reverse the pattern and stabilise domestic prices, it is important to focus on increasing the production of major oilseeds and exploring the potential of non-conventional oils such as rice bran oil and corn oil. India’s persistent deficit in pulses needs to be tackled; efforts are needed to expand the area under pulses. Trade- Exports and Imports rise The adverse trade environment is expected to ease somewhat this year and next, boosting goods trade in FY25. India’s overall exports have been growing on a secular basis since FY17 for almost three years. However, FY20 saw an economic slowdown aggravated by the pandemic. A similar trend has been observed in overall imports. Overall imports increased to $898 billion in FY23 compared to $760.1 billion in FY22. Health of India According to health ministry estimates, the total cost of the treatment would have been 1.5-2 times higher if the beneficiary had availed the same treatment on their own outside the ambit of Ayushman Bharat. The scheme has saved more than Rs1.25 lakh crore of out-of-pocket expenses for poor and deprived families as of 12the January 2024. Overall, the share of primary healthcare expenditure has increased from 51.3 percent of gross health expenditure (GHE) in FY15 to 55.9 percent of GHE in FY20. The share of primary and secondary GHE rose from 73.2 percent in FY15 to 85.5 percent in FY20. The share of primary and secondary care in private health expenditure has declined from 83 percent to 73.7 percent during the same period. Government-financed health insurance schemes and medical reimbursements made to government employees have increased significantly from 5.7 percent in FY15 to 9.4 percent in FY20. State of education About 49 percent of schools have access to the internet, 47.7 percent of schools have computers, 74.3 percent of schools have medical check-ups in a year and 91.7 percent of schools have electricity. Total enrolment in higher education has increased to nearly 4.33 crore in FY22 from 4.14 crore in FY21 and 3.42 cr in FY15, an increase of 26.5 percent since FY15. The rise in enrolment in higher education has been driven by underprivileged sections such as SC, ST and OBC, with a faster growth in female enrolment across sections. Female enrolment in higher education increased to 2.07 crore in FY22 from 1.57 crore in FY15, a 31.6 percent increase since FY15. CEA cites the model of an NGO, Lend A Hand India, to operationalise vocational education across the learning ladder. The LAHI model includes civil society’s collaboration with the governments to introduce vocational education as a core curriculum component, establish labs etc. How India works India’s workforce is estimated to have been nearly 56.5 crore in FY23 using WPR from PLFS and MoHFW’s population projections. According to PLFS, more than 45 percent of the workforce is employed in agriculture, 11.4 percent in manufacturing, 28.9 percent in services, and 13 percent is in construction. The predominance of agriculture in the providing employment to nearly half of the population, especially females, is both a challenge and an opportunity. In terms of the employment status of workers, 57.3 percent of the total workforce is self-employed, and 18.3 percent is working as unpaid workers in household enterprises. Casual labour comprises 21.8 percent of the total workforce, and regular wage/salaried workers are 20.9 per cent of the total workforce. Gender-wise, the female workforce is shifting to self-employment, while the male workforce’s share has been stable. This is evident in the sharp rise in female LFPR in the past six years, driven by rural women joining agriculture and related activities. According to PLFS, youth (age 15-29 years) unemployment rate has declined from 17.8 percent in 2017-18 to 10 percent in 2022-23, while other indicators have also improved over time. The rise in youth employment is also reflected in the formal employment figures, as per Employees’ Provident Fund Organisation (EPFO) data. The annual new EPF subscribers aged 18-28 years have been following an upward trajectory after witnessing a decline during the COVID-19 pandemic. Nearly two-thirds of the new subscribers in the EPFO payroll have been from the 18-28 year band. Thus, youth employment has been rising in tandem with the youth population. In terms of the number of establishments, the organised manufacturing landscape is dominated by smaller factories. In 2021-22, factories employing less than 100 people constituted 79.2 percent of all factories while contributing only 22.1 percent of the total people employed and 20.9 percent of workers. This has been improving over time as there is a visible trend towards a rise in larger factories. Compared to a broadly constant number of smaller factories, the number of factories employing more than 100 workers saw 11.8 percent growth from FY18 to FY22. Thus, in terms of total persons engaged, employment has been rising in bigger factories (employing more than 100 workers) than in smaller ones, suggesting a scaling up of manufacturing units. This is a positive development in terms of quality of employment, as wages per worker tend to rise with the employment size of factories, the survey states. In terms of the sectoral share of factory employment (total persons engaged), the food products industry (11.1 percent) remained the largest employer, followed by textiles, primary metals, wearing apparel and motor vehicles, trailers, and semi-trailers. However, in terms of growth in employment in the last five years, the rising heft of computers and electronics, rubber and plastic products, and chemicals indicates that Indian manufacturing is moving up the value chain and have emerged as sunrise sectors for manufacturing employment generation. Where India works State-wise, the top six states in terms of the number of factories, were also the greatest factory employment creators. More than 40 percent of factory employment was in Tamil Nadu, Gujarat, and Maharashtra. In contrast, the highest employment growth between FY18 and FY22 was seen in states with a higher share of young population, including Chhattisgarh, Haryana and Uttar Pradesh. | null | null | 2024-07-22 18:48 |
moneycontrol.com | https://www.moneycontrol.com/news/business/economy/agricultural-sector-likely-to-perform-better-in-fy25-cea-12775089.html | Agricultural sector likely to perform better in FY25: CEA | Provisional estimates for 2023-24 peg the agricultural growth rate at 1.4 per cent..Related stories. | The agricultural sector is expected to perform better after stagnant growth of 1.4 percent in Fy24 as estimated in the provisional estimates. This is likely despite the monsoon not performing as predicted by the (India Meteorological Department), the chief economic advisorV Anantha Nageswaransaid on July 22. ''Agriculture sector is expected to perform better in the coming year. Monsoon not performing as predicted by the IMD before the season began,'' Nageswaran said at the press conference after theEconomic Surveywas tabled in the Parliament by Finance Minister Nirmala Sitharaman. The Indian Meteorological Department had forecast that India is set to receive above-normal monsoon rains this year. The monsoon is, however, not progressing as the IMD predicted before the monsoon season began. The rainfall needs to be spatially distributed, else the agricultural yield is impacted, the CEA said. The farm sector has clocked an average annual growth rate of 4.18 per cent over the last five years, with provisional estimates for 2023-24 pegging the agri growth rate at 1.4 per cent. ALSO READ:For more details go to Economic Survey blog The Survey outlines six key areas for growth in the Amrit Kaal. The government aims to unlock the potential of agriculture as a major growth driver by removing existing policy impediments. Going forward, the Digital Agriculture Mission 2021–2025 intends to modernise farming via the use of AI, remote sensing and drones, the Economic Survey projects. A special effort for agri infrastructure is being pushed out to enhance food grain storage facilities, the Survey said, highlighting Rs 4,570 crore allocated as subsidy for storage infrastructure, and Rs 2,084 crore set to be further released as subsidy under Agriculture Marketing Infrastructure (AMI) scheme. "Agriculture policies must be consistent with climate imperatives and water security", the Survey goes on to add. "Investment in technology, production methods, marketing infrastructure, and reduction in post-harvest losses need to be scaled up." The Economic Survey said government's policies aim to improve the agri market infrastructure through E-NAM, FPOs, and allowing cooperatives in agri-marketing. | null | null | 2024-07-22 18:14 |
moneycontrol.com | https://www.moneycontrol.com/news/business/economy/too-much-instagram-and-fries-could-choke-india-economic-growth-says-economic-survey-12774747.html | Too much Instagram and fries could choke India's economic growth, says Economic Survey | This mix of unhealthy habits can undermine public health and productivity and diminish IndiaŌĆÖs economic potential, the Survey warned..Related stories. | IndiaŌĆÖs economic future is at risk from a public health crisis fuelled by unhealthy lifestyles, including sedentary habits, excessive screen time, and poor diets, the Economic Survey 2023-24 said. This mix of unhealthy habits can undermine public health and productivity and diminish IndiaŌĆÖs economic potential, the Survey warned. It criticized the private sectorŌĆÖs role in contributing to these. Highlighting the health and commercial benefits of traditional Indian lifestyles, the survey advocated that businesses adopt and promote these practices globally to boost their market leadership and profitability. Economic Survey:CEA flags geopolitics, rise of AI as key challenges for Viksit Bharat and urges India Inc to step up India is home to one of the youngest populations in the world, having a median age of 28 years, according to the Survey. ŌĆ£India can harness its demographic dividend by nurturing a workforce that is equipped with employable skills and prepared for the needs of the industry,ŌĆØ the Survey read. In this background, it is important the country keeps its workforce healthy not just to maintain public health, but also to boost productivity. The Survey also blamed the private sector for its ŌĆśmyopicŌĆÖ contribution to this ŌĆśtoxicŌĆÖ mix of habits. It said that IndiaŌĆÖs traditional lifestyles and foods are more sustainable and it is something that the private sector can explore commercially. Also read:Growth set to slow to 6.5-7% in FY25; Survey asks corporates to pick the baton on job creation ŌĆ£The emerging food consumption habits of Indians are not only unhealthy but also environmentally unsustainable. IndiaŌĆÖs traditional lifestyle, food and recipes have shown how to live healthily and in harmony with nature and the environment for centuries.ŌĆØ The Survey also said that it is crucial for India to move towards a more balanced diet to ŌĆ£reap the gains of its demographic dividendŌĆØ. Recently, the public health situation has been slowly taking a grim turn.The obesity rate among adults in India has more than tripled, and the annual rise in childrenŌĆÖs is the steepest in the world for India, behind Vietnam and Namibia, according to the World Obesity Federation. According to National Family Health Survey 5 (NFHS-5), the percentage of men facing obesity in the age bracket 18-69 has increased to 22.9 percent in NFHS-5 from 18.9 percent in NFHS-4. For women, it has increased from 20.6 percent (NFHS-4) to 24 percent (NFHS-5). | null | null | 2024-07-22 18:04 |
moneycontrol.com | https://www.moneycontrol.com/news/opinion/no-need-to-raise-capital-gains-tax-for-now-12775085.html | No need to raise capital gains tax for now | A higher capital gains tax is a bigger worry in the long run than any political instability..Related stories. | The markets appear to be on pause mode for the last trading sessions after closing at record highs last Thursday (July 18), with the Nifty ending at 24,801 on that day. On Monday, the Nifty closed 21.60 points down at 24,509.30, though market width was positive. The markets appear to be waiting for Tuesday’sbudgetin the wake of persistent rumours thatcapital gains taxrates may be hiked. Long term capital gains (LTCG) tax in India is 10% and the short-term rate (STCG) 15%. Numerous market participants have said that a higher capital gains tax is a bigger worry in the long run than any political instability caused by the BJP’s tally in Parliament falling below the 270 mark. Intriguingly the Economic Survey released on Monday refers approvingly to a June 2024 IMF staff paper which recommends “well-designed excess corporate profit taxes and high personal income taxes on capital through better enforcement of automatic information exchange between countries and enhanced taxation of capital gain.” To be clear the IMF paper quoted in the survey is with reference to policy measures to mitigate inequality caused by possible large-scale displacement of labour resulting widespread adoption of AI. There is no direct correlation between its conclusions appearing in the Survey, and the possibility ofhigher capital gains taxin Tuesday’s budget which appear to be the stuff of Indian investors’ nightmare. Nonetheless, the upcoming budget should leave rates unchanged. While as a theoretical proposition higher rates may be sound economics -- the theory in question being that income from sale of shares and mutual funds should be treated the same as salaries -- the government should hold its hand at this stage of the development of Indian stock markets and the economy. There are two reasons not to impose capital gains tax on equity instruments. One is that China, with which we are in direct tax for investment, has a 20% tax on all kinds of capital gains, though for certain types of share transfer the tax is not levied, as per information in the public domain. Further, taxing capital gains in India at the highest marginal income tax rate could mean a taxation at a 39% rate, one of the highest in the world. The income tax rate for those earning more than Rs 5 crore is 39% if the taxpayer in question was filing taxes under the old tax regime, while the rate is around 42% for those opting for the old regime. As per PwC, Hong Kong -- whose market capitalization briefly fell behind India last year -- does not tax capital gains from sales of equity. It is true that many countries taxcapital gains at the income tax rateapplicable to that taxpayer, but India's tax rate, at 35% for Rs 1 crore and above and around 40% for Rs 5 crore and more, is on the higher side. International competitiveness apart, there can be little doubt that the rise in markets and the consequent wealth effect has substantially benefited the incumbent government in terms of boost in sentiment. Further, the wealth effect boosts consumption as a rise in value of equity and mutual fund holdings encourage buying. This may reinforce the premiumisation of consumer spending widely referred to by FMCG companies, but till there is a structural solution to the problems of rural underemployment, we may have to live with a faster growth in consumption of relatively pricier goods. Also, the huge rise in SIP inflows since 21-22 have created a large category of people, many of them new investors, who have benefited from stock market investments. SIP inflows were Rs 21,260 crore in June 2024 compared with Rs 8,183 crore in May 2019. Remarkably the amount collected in June 2024, is about half the amount the during the whole of fiscal 2016-17. The number of SIP accounts were 8.99 crore (89 million) more than four times the June 2019 number as per AMFI data. A sudden rise in capital gains tax would hurt the confidence of these investors. Further while foreign portfolio investors may be protected under various tax treaties, clearly domestic investors would have no such protection. A drastic alteration of the capital gains tax regime should be off the table, at least for now. | null | null | 2024-07-22 18:03 |
moneycontrol.com | https://www.moneycontrol.com/news/business/moneycontrol-pro-panorama-metal-companies-look-east-for-relief-12775066.html | Moneycontrol Pro Panorama | Metal companies look East for relief | market.Related stories. | Dear Reader, China took the markets by surprise, after itÂannounced a series of measures aimed at providing a monetary stimulus. The one-year loan prime rate (LPR) was cut by 10 basis points to 3.35 percent and the 5-year LPR by 10 basis points to 3.85 percent. The People’s Bank of China also said it will cut the 7-day reverse repo rate by 10 basis points to 1.7 percent and improve the mechanism of open market operations, according to a Reuters report. The report also mentioned that a report from the official China news agency Xinhua quoted sources close to the PBOC as saying “the cut showed its determination to bolster the recovery and it was in response to the plenum’s aims to achieve this year’s growth target”. We had written about theÂChina’s Third Plenum, its importance and what it could seek to achieve. While the Plenum has concluded, the 60-point document releaseddid not point to any major policy shift,Âreaffirmed policy goals but did not lay down implementation steps,Âaccording to this Reuters report seen on Moneycontrol. That’s why the monetary measures come as a surprise as they did not wait for the US Fed to start its easing cycle to follow suit. It opens up the possibility that when the Fed does start its cycle, China may take more measures then. If these measures are followed up with some fiscal measures as well, then the hope is that China’s economy climbs to a more robust level of growth. India’s metals industry will be keen awaiting a revival in China’s domestic economy. JSW Steel’s Q1 results reflect the scars of China’s surplus position in steel as its companies continue to churn out excess output despite the state of the economy. It has been exporting steel with the neighbouring countries being the main target. My colleague Lekha BadlaniÂanalysed JSW Steel’s performanceÂin the June quarter, which showed that per tonne realisation, on a consolidated basis, fell by 5.1 percent YoY. She writes, “Excess dumping by China in the export market has become an increased cause of concern recently. This is likely to keep steel prices range-bound. However, JSW is more focused on value-added special steel products in its portfolio, which should support realisations.” China’s steel exports not only hurt prices but also affect the volume of exports from India as lower realisations make it unviable. China’s moribund domestic economy also puts downward pressure on metals prices. While steel prices have been under pressure, it is also putting pressure on iron ore and coking coal prices. Similarly, the non-ferrous complex is also under pressure with copper, aluminium and zinc prices falling significantly in recent months. Now, falling commodity prices may be good for user industries such as construction, automobiles and infrastructure. However, it’s bad news for India’s metal companies as they find their realisations under strain, which in turn will put their profitability under pressure. This will also limit their appetite for making further investments in capacity addition and lead to delays in existing plans. One of the ways in which the government can support domestic metal companies is to impose higher tariffs on imports, limiting price erosion. But as in all such measures, the user industries will suffer from higher duties. Tomorrow’sBudgetcould give us an idea of whether the government believes that basic industries such as metals need more protection from cheap imports. If it does, then investor sentiment for metal stocks could perk up. But a bigger boost can come from China’s success in kick starting a domestic-economy led growth recovery. Investing insights from our research team Wipro Q1 FY25: Growth remains elusive HDFC Bank Q1 FY25 – no major improvement, loan growth to lag deposit curve in near term Kotak Mahindra Bank Q1 FY25 – under the shadow of the embargo Indian Hotels Company: Temporary blip in Q1 FY25; long-term story intact UltraTech - Steady Q1 results Dalmia Bharat Q1: Uninspiring pricing outlook Polycab India Q1: Staying the course Tracker Monsoon Watch: Sowing gathers pace, surpasses last year’s acreage What else are we reading? Economic Survey 2023-24 has a word of caution to banks: Resist the temptation for short-term profits Moneycontrol Pro Market Outlook | Markets approach the Budget week with caution Budget Snapshot: India’s effective corporate tax rate is now closer to global peers The day when the world’s computers went on strike Three things for investors to focus on ahead of Union Budget 2024 In Union Budget 2024, government should help accelerate capacity additions in power sector The Eastern Window: Hasina's response to Court order would determine the fate of violent unrest in Bangladesh Lessons from Karnataka’s misadventure on seeking job reservation A welcome dose of realism in the Economic Survey Rural Consumption: Where are the cracks, asks Economic Survey 2023-24 Can bond market make fiscal prudence look like a stimulus? Economic Survey 2023-24 has the right prescription for coal power plants Economic Survey 2023-24 has a word of caution to banks: Resist the temptation for short-term profits Tackling Climate Change: Crux of the matter is finding the money Address bottlenecks to private sector participation in infra: Economic Survey Digital paralysis shows the dangers of e-globalisationÂ(republished from the FT) After Joe Biden, is there still a Trump trade? (republished from the FT) Understanding the origins of Modi government’s economic philosophy ahead of Budget 2024-25 Prioritising a stable and simple tax regime in Budget 2024 to enhance ease of doing business India must play peacemaker in bloodied Bangladesh Jammu in jihadist crosshairs Byju’s was the problem, not edtech Personal Finance ITR filing 2024: How tax harvesting can slash the tax payable, boost returns Markets Does your heart beat for the customer, Sebi chief asks mutual fund distributors Technical Picks:ÂInfosys,ÂBank Nifty,ÂIRCON International,ÂLead andÂBEL(These are published every trading day before markets open and can be read on the app)Ravi AnanthanarayananMoneycontrol Pro  | null | null | 2024-07-22 17:48 |
moneycontrol.com | https://www.moneycontrol.com/news/business/economy/fy25-gdp-growth-estimate-at-6-5-7-is-prudent-not-pessimistic-cea-12775055.html | FY25 GDP growth estimate at 6.5-7% is prudent, not pessimistic: CEA | Chief Economic Advisor V Anantha Nageswaran.Related stories. | Despite the RBI estimating India’s GDP growth at 7.2 percent GDP growth in FY25 and other international agencies also revising their projection upwards, the Economic Survey has projected a conservative estimate of 6.5-7 percent in the current fiscal. With the global environment posing several challenges and monsoon not progressing the way predicted, the Chief Economic Advisor (CEA)V Anantha Nageswaransaid that the Economic Survey was mindful of these risks and thus projects a ''doable'' growth estimate. ''We are not pessimistic, we are optimistic about growth. But we are mindful of challenges, about the way the monsoon has progressed. Given that we feel 7 percent is doable, but yet we want to be not necessarily cautious but prudent'' Nageswaran said at a press conference after the tabling of the Economic Survey in the Parliament by Union Finance Minister Nirmala Sitharaman. The Indian Meteorological Department had forecast that India is set to receive above-normal monsoon rains this year. The monsoon is, however, not progressing as the IMD predicted before the monsoon season began, the CEA said. ''We were more confident of 7 percent GDP growth when we wrote the interim economic survey in January. Since then the global environment has become even more polarised. We would rather be pleasantly surprised than be forced to face disappointment which is why we are projecting aGDP growthrate of 6.5-7 percent,'' he added. The growth estimated by the Survey, released a day before Sitharaman presents theBudgetfor the ongoing financial year, is in line with the International Monetary Fund’s estimate of 7 percent. One basis point is one-hundredth of a percentage point. ''The way the monsoon has been shaping up, the global geopolitical environment and financial markets risks rising in the developed world and its spillover impact on India. We will get where we want to get better if we are aware of the challenges we face, that’s the message of the Economic Survey,'' he said. The Survey, supervised by the chief economic adviser gives a detailed account of the state of the economy, prospects, and policy challenges.The Economic Survey noted that in view of the geopolitical challenges, heavy lifting has to be done on the domestic front to sustain this recovery.The way the global factors are unfolding we do not have the luxury to choose a single approach. No economic approach for growth can be excluded, instead, all the factors combined including manufacturing, he said. ''We need all hands on the table, all approaches, whether from the government, private or social sector. We are facing a very challenging global environment, along with climate change, so we need to make sure we pursue all possible approaches without any doctrinal orientation or ideological orientation. Pragmatism has to be the policy mantra,'' he added. | null | null | 2024-07-22 17:30 |
moneycontrol.com | https://www.moneycontrol.com/news/business/budget/why-a-populist-budget-wont-be-bad-after-all-12774703.html | Why a populist Budget won’t be bad, after all | Union Budget.Related stories. | By Divam Sharma, Founder and Fund Manager at Green Portfolio Populist budgets don’t necessarily need to be bad, nor do they need to please everyone. Thebudgetback in February was nothing close to being populist, but now we might see some populist measures as the government tries to gain public confidence and support. Let’s look at things from a couple of different perspectives. First off, consumption. Apopulist budgetcan really help improve consumption spending, particularly in rural areas. We have seen FMCG staying muted during most of FY24. So, a populist budget can be beneficial as it would help in the revival of demand from the rural side in FMCG which has been laggard due to erratic rainfalls impacting the farming industry hence lower consumption from that side. We have already started seeing some green shots here and there in rural consumption, and a good budget would further aid in that growth. Also read:ÂEconomic Survey pegs FY25 GDP growth at 6.5-7% It’s all about consumption, we can talk about different sectors but it comes down to consumption for all. The country has been trying to become an electronic hub, and consumption growth can aid in domestic demand for electronics as well. For the auto industry, a subsidy in EVs (electric vehicles) for 2-wheelers and 3-wheelers would push the demand aid in government EV targets and also please consumers. Apopulist budgetcan also be really beneficial for the broader economy too. We often talk about the trickle-down effect and GDP multiplier, a populist budget ensures that the money goes down to the masses. These are the ones who spend the money they receive and this in turn ensures a higher GDP multiplier for the economy. These kinds of budgets are focused more on improving the infra and healthcare sectors so that the economy would benefit from the same better roads, bridges, and better healthcare facilities for lower-income populations. We can also expect an increased focus on education, higher education in particular as a measure to focus on the youth of the country which could lead to increased productivity and better quality of talent down the line. Also read:ÂExpenditure on education grew at CAGR 9.4%: Economic Survey 2024 It’s a cycle.Populist budgetbasically unleashes the animal spirits in consumption. This would help in ensuring good economic momentum in times when there are uncertainties all over the globe. In the case of India, we have seen domestic demand driving the economy when the global economy was under pressure. Higher domestic consumption opportunity drives higher capital in terms of FDI, FII, DII, and retail to markets. Higher amounts of money in hand would lead to more savings and that could aid in the growth of the financial industry and better allocation of funds. Increased consumption and better inflows help expand the overall size of the economy. And again, of course, apopulist budgethelps the incumbent government to gain back the reduced confidence and ensure continuity with stronger confidence. | null | null | 2024-07-22 17:16 |
moneycontrol.com | https://www.moneycontrol.com/news/opinion/economic-survey-conservative-growth-forecast-jobs-and-private-investment-puzzles-12774885.html | Economic Survey projects conservative growth forecast for FY25, but leaves jobs and private investment puzzle unanswered | India is among a handful of economies that have fully recovered from it in terms of economic output..Related stories. | India’s economic growth as measured by GDP in 2023-24 beat expectations of not just private forecasters but also last year’s Economic Survey by a significant margin. Therefore, a “conservative” GDP estimate in 2024-25 of 6.5-7 percent by the latest Economic Survey may well be surpassed again. Yet, a search for answers inthe Economic Surveyon two other interrelated aspects, jobs and private sector investment, don’t provide satisfactory explanations on why their performance is at odds with India’s GDP growth. These answers matter because their performance will influence the GDP trajectory over a five-year period. Pandemic damage is neutralised The global economic damage caused by the outbreak of Covid-19 was significant. Today, India is among a handful of economies that have fully recovered from it in terms of economic output. The Survey pointed out that in 2023-24, India’s GDP reached the level projected by the pre-pandemic trajectory. Simply put, the speed of the GDP expansion has ensured that there is no permanent loss in output and demand. This is the highlight of India’s post-pandemic economic performance. But jobs growth lags Growth by itself is not enough. The Survey explains, “employment is the crucial link between growth and prosperity”. This is where the first puzzle emerges. Between 2015-16 and 2022-23, government data showed that there was a reduction of 1.6 million workers in unincorporated enterprises. Separately, other government employment data show that a part of the workforce must have drifted back to agriculture as the proportion employed in agriculture increased from 42.5 percent in 2018-19 (pre-pandemic year) to 45.8 percent in 2022-23. The Survey feels it may be premature to conclude that there are structural factors holding back the job market as there were economic shocks such as the pandemic which had an influence. What the Survey indicates is that recovery in employment is trailing recovery in output, or GDP. But there’s no clear answer about the reason for the mismatch in the recoveries. This is the economic backdrop in which we need to view the Survey’s estimate that India in the future will need to create 7.8 million jobs every year in theÂnon-farm sector. Private investment’s quality leads to more questions Most jobs will have to be generated by the private sector. It’s here that the Survey’s second puzzle shows up. India’s recent economic growth has been driven by animprovement in the investment cycle. But the heavy lifting here has been done by central and state governments. Consider the data put out by the Survey. Between 2018-19 and 2022-23, the share of private non-financial corporation in fixed investment increased by just 0.8 percentage points to 34.9%. However, as the Survey observes, most of this increase came from investment that will have a potentially lower impact on industrial competitiveness. To illustrate, the cumulative investment during this period in machinery, equipment and Intellectual Property has grown only 35 percent. Therefore, the majority of extra private fixed investment has been in buildings and not in areas that do the most to enhance competitiveness. Answers are key to increasing growth momentum Private investment, demand and the nature of employment are intertwined. All of them have a big bearing on the speed of economic growth. Based on the Survey, it’s hard to get a clear sense of what’s happening to many simultaneously moving parts in the economy.India’s GDP growth is stellar, but why are some key components of the economy lagging? While there may have been no permanent damage to the growth trajectory in the economic output because of Covid-19, it’s hard to say if that is the case with the job market. That said, for the current financial year, in the absence of any external shock, India’s GDP should comfortably meet the Economic Survey’s forecast. | null | null | 2024-07-22 17:15 |
moneycontrol.com | https://www.moneycontrol.com/news/business/economy/consumer-price-index-base-to-be-revised-to-2024-producer-price-index-to-be-expedited-12774921.html | Consumer price index base to be revised to 2024; producer price index to be expedited | Inflation base changed to 2024.Related stories. | India’s consumer inflation basket will have 2024 as base year, the Economic Survey 2023-24 said on July 22, noting that the government will also work towards expediting the availability of producer price index. “An extensive exercise for base revision of important economic statistics is being taken up at MoSPI (ministry of statistics and programme implementation). The exercise to change the base year of CPI from 2012 to 2024 has been initiated,” the survey said. Moneycontrolhad earlier reported that the government was looking to reviseconsumer price index base to 2024. The ministry already has initiated market survey to identify shops across markets. Along with the base year, the commodities used in calculation of the consumer price index are also expected to undergo revision. The current series considers data from 2011-12, where many commodities like tape recorders, VCRs and cassettes have become obsolete. “The ongoing efforts to construct the producer price index for goods and services may be expedited to have a greater grasp of episodes of cost-push inflation,” the survey noted. At present, India has a wholesale price index, which is also over a decade old. India is also looking to revise GDP, and other series. The government is looking to align all indicators to a single base year. Moneycontrolhad reported that the new GDP series is likely to be made available fromearly 2026. | null | null | 2024-07-22 16:52 |
moneycontrol.com | https://www.moneycontrol.com/technology/uncertainty-in-job-sector-impact-on-environment-five-important-points-that-economic-survey-makes-on-ai-article-12774832.html | Uncertainty in job sector, impact on environment: Five important points that Economic Survey makes on AI | The Indian government in March approved a Rs 10,732 crore IndiaAI mission in a bid to develop the country's AI infrastructure capabilities and so on.Related stories. | The Economic Survey has covered a range of topics that affect the Indian economy, and a large portion of it has been devoted to artificial intelligence and its impact on the country especially in sectors such as job creation, environment and so on. In the 476-page formulated report by chief economic advisor V Anantha Nageswaran, which was tabled in the Parliament on July 22, it was pointed out that AI has cast a "pall of uncertainty" in the job sector across all skill levels -- low, semi and high. "Its (Artificial Intelligence's) productivity-enhancing potential is beyond doubt, but the social impact of emerging technologies such as Artificial Intelligence (AI) via labour market disruptions and labour displacement is barely understood. It also has the potential to skew the capital and labour shares of income in favour of the former," the survey said. The report calls on the Centre, state governments and private sector to overcome these challenges in a bid to maintain high growth rates for the country. "These will create barriers and hurdles to stained high growth rates for India in the coming years and decades. Overcoming these requires a grand alliance of Union and State government and private sector," the report said. "..job market must adapt while steering the technological choices towards collective welfare is key," the report said about AI and the job sector in another section. Here are four other important points that the Economic Survey makes about AI.India integrating AI in value chain through agreements:ÂThe survey said that in the medium, India has been focusing on integrating its value chain with that of the West, in sectors such as AI, renewable energy, semiconductors and so on. "This strategy is being pursued through agreements such as the Australia-India Free Trade Agreement and US-India Clean Energy Initiative. As a result trading patterns within these sectors are starting to develop," the survey said.AI increasing carbon emissions: "The fact is that AI is an energy guzzler. Even as the data centres are ramping up energy demand, cloud storage facilities, crypto mining, and AI are all expected to increase this exponentially," the Economic Survey says. The Economic Survey did not hold back while castigating AI for its impact on the environment. It pointed out that the race to dominate AI has caused carbon emissions to be higher by 30 per cent by 2023.India has 16% of the world's AI talent: India is positioning itself as an innovation hub for artificial intelligence (AI),housing 16 per cent of the world’s AI talentand demonstrating rapid adoption of AI skills, the Economic Survey 2023-24 said. The report also said that there are over 13,000 Department for Promotion of Industry and Internal Trade recognised startups in AI, Internet of Things, robotics and nanotechnology by the end of FY 2024.India working on responsible deployment of AI: The Economic Survey said that India is the current chair of the Global Partnership on Artificial Intelligence (GPAI) and that it has been working on the initiative's various goals including "responsible development, deployment and adoption of AI". "The Union Cabinet has approved an allocation of over â‚ą10,300 crore towards the comprehensive IndiaAl Mission to democratise access to Al innovation pillars and ensure global competitiveness of India’s Al ecosystem," the survey says. | null | null | 2024-07-22 16:40 |
moneycontrol.com | https://www.moneycontrol.com/news/business/markets/hong-kong-to-launch-asias-first-inverse-bitcoin-etf-12774900.html | Hong Kong to launch Asia's first inverse bitcoin ETF | Hong Kong to launch Asia's first inverse bitcoin ETF.Related stories. | Asia's first inverse bitcoin exchange-traded fund that allows investors to bet on a fall in the cryptocurrency, is set to debut in Hong Kong on Tuesday. Hong Kong's CSOP Asset Management said it will launch the CSOP Bitcoin Futures Daily (-1x) Inverse Product on the city's stock exchange on Tuesday morning. The ETF is expected to take advantage of rising demand to profit from the volatile trading of cryptocurrencies. After the first batch of spot crypto ETFs went public in Hong Kong in April, bitcoin had a bumpy second quarter, losing more than 12%. "The first futures-based inverse bitcoin product listed in Hong Kong creates opportunities for investors to gain from downside movements in bitcoin," said Ding Chen, CEO of CSOP Asset Management in a statement. Bitcoin has been the most erratic among major global assets in the last ten years, with volatility as high as 38.3% in 2023, surpassing crude oil and the Nasdaq 100, the company added. Bitcoin rebounded strongly in the past few weeks on increased expectations that Republican presidential nominee Donald Trump would regain the White House. It was up slightly and traded at around $67,400 on Monday following U.S. President Joe Biden's decision to quit the presidential race. CSOP's inverse bitcoin product aims to provide a return that closely matches the one-time inverse daily performance of the S&P Bitcoin Futures Index, the firm said. CSOP launched Asia's first bitcoin futures ETF in Hong Kong in 2022. The market value of the ETF grew to more than $100 million due to the global crypto price rally earlier this year, but had dropped to about $58 million as of Friday. | null | null | 2024-07-22 16:30 |
moneycontrol.com | https://www.moneycontrol.com/news/business/markets/rupee-rises-3-paise-to-close-at-83-67-against-us-dollar-12774883.html | Rupee rises 3 paise to close at 83.67 against US dollar | Rupee rises 3 paise to close at 83.67 against US dollar.Related stories. | The rupee consolidated in a narrow range to settle 3 paise higher at 83.67 (provisional) against the American currency on Monday, as crude oil prices and the US dollar retreated from their elevated levels. Forex traders said the Indian rupee recovered from all-time low levels and traded in a narrow range as mixed-to-weak domestic markets put downside pressure on the rupee. However, weak tone in the US dollar and a decline in crude oil prices cushioned the downside. At the interbank foreign exchange market, the local unit opened at 83.66, and touched an intraday high of 83.65 and a low of 83.68 against the dollar during the trading session. It finally settled at 83.67 (provisional) against the American currency, registering a gain of 3 paise from its previous close. On Friday, the rupee depreciated 7 paise to settle at its all-time low of 83.70 against the US dollar. "We expect the rupee to trade with a slight negative bias on the weak tone in the global markets and overall strength in the US dollar. Weak Asian currencies and a weak yuan may also support the dollar. However, weakness in crude oil prices and FII inflows may support the rupee at lower levels," said Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas. Any intervention by the RBI may also support the rupee. Investors may take cues from India'sUnion Budget. USD-INR spot price is expected to trade in a range of Rs 83.20 to Rs 84.20, Choudhary added. Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading lower by 0.17 per cent at 104.22. Brent crude futures, the global oil benchmark, were trading marginally lower by 0.29 per cent at USD 82.39 per barrel. On the macroeconomic front, India's forex reserves jumped by USD 9.699 billion to an all-time high of USD 666.854 billion for the week ended July 12, the RBI said on Friday. In the previous reporting week, the kitty had increased by USD 5.158 billion to USD 657.155 billion, surpassing the previous high of USD 655.817 billion for the week ended June 7. In the domestic equity market, the 30-share BSE Sensex fell 102.57 points or 0.13 per cent to settle at 80,502.08 points and Nifty dropped 21.65 points or 0.09 per cent to 24,509.25 points. Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Friday as they purchased shares worth Rs 1,506.12 crore, according to exchange data. | null | null | 2024-07-22 16:07 |
moneycontrol.com | https://www.moneycontrol.com/technology/hiring-in-it-sector-unlikely-to-pick-up-significantly-says-economic-survey-article-12774560.html | Hiring in IT sector unlikely to pick up significantly, says Economic Survey | Representative image.Related stories. | The Economic Survey for the financial year 2023-24, tabled on July 22 in the Parliament, said that hiring in the information technology (IT) sector had slowed down considerably in the last financial year, and even if hiring does not decline further, it is unlikely to pick up significantly. The comment on the IT sector in the Survey comes at a time when headcount in some of the biggest IT companies declined for the first time in decades. In February, tech industry body Nasscom had said the sector will create just 60,000 new jobs in the FY24, which pales in comparison to the 270,000 jobs that the sector created in the previous fiscal year. Nonetheless, the additions in FY24 would take the total to 5.43 million employees in the services export sector. “However, leveraging the initiatives taken by the government and capturing the untapped potential in emerging markets, exports of business, consultancy and IT-enabled services can expand,” the survey read. The document further says that IT and business services will likely retain their prominent international presence in the medium term. “However, studies suggest that the application of Artificial Intelligence (AI) is likely to restrain the growth opportunities for business services progressively and, therefore, poses a challenge to long-term sustainability and job creation,” the document read. It further said that the IT and IT-enabled services have been instrumental in maintaining the country's external balance through export earnings, which are set to increase further. “The flourishing growth of IT services has also supported the expansion of Global Capability Centres (GCCs) and the tech start-up ecosystem in India,” the document read. Also read:ÂRevenue of ER&D GCCs grows over 30% to $25 billion GCCs in India | null | null | 2024-07-22 15:43 |
moneycontrol.com | https://www.moneycontrol.com/news/business/budget/capital-gains-tax-why-fix-something-that-aint-broke-12774815.html | Capital Gains Tax: Why fix something that ain’t broke | Budget 2024.Related stories. | By Tushar Pradhan, Director at Hxgon Partners LLP The first full budget of the third term of the BJP government and the first of the coalition government is the subject of much debate already. There are various wishlists that industry bodies, corporates and individuals have prepared and are keenly looking at the fine print at the incoming budget. While it is a full budget, as opposed to an interim budget going into the elections in February, it will also be pertinent to note that in view of only a part of the year now being covered the government may decide to keep the policy oriented and major announcements for next February. Having said that, certain headlines point to some very sensitive issues especially connected to the capital markets, that have grabbed attention lately. While much of the speculation should rightfully border around the overall growth orientation, revenue maximisation and social equity addressed in the budget as main thrusts, the more controversial issue is the one relating to capital gains tax. There is speculation that there may be a change in the rate, or the holding period to determine short or long term for investments in equity and equity related instruments. Such a change if enacted may have an outsized impact on the market as sentiment in the short term is more impactful than the actual outcome. Also read:ÂEconomic Survey pegs FY25 GDP growth at 6.5-7% It will be interesting to note the reason why differential tax rates exists between income tax rates and capital gains tax in the first place. In a country that was starved of investment from its own public, the challenge was for providing capital for its growing industrial infrastructure needs by way of incentivising longer term investments by providing a tax arbitrage. If investors are willing to put their savings to work for a longer term, they should be adequately compensated for such allocation that not only satisfies the need for capital formation without additional outlay by the government or its agencies but also provides for a healthy return for deferring the outcome to investors. The capital gains tax globally also follows a similar pattern. For example, in the US, the long-term capital gains tax rates for the 2023 and 2024 tax years are 0%, 15%, or 20% of the profit, depending on the income of the filer. Please note, lower income filers get the benefit of zero capital gains tax there. Click Here To ReadAll Budget Related News This debate that these tax rates confer some undeserved advantage to investors while the employed majority is paying a higher tax rate is erroneous. The twin advantages of capital formation, employment of private capital for longer term usage is a needed measure for the government to see a lighter load on itself to provide the same. The short-term capital gains tax also is set higher to discourage speculation. Having increased the LTCG from zero to 10 percent and introducing differential rates for debt mutual funds and elongating the term for defining such gains, the government has already done its bit to disincentivise such investments to a certain degree. To change this picture for the worse will be sheer folly. This kind of signaling will sour investor sentiment and the booming equity cult that has recently formed will thus die a premature death. India needs long term investments, and such investments need the support of the government. Investments are not without risk and the just reward for patience is by way of such differential rates and in the larger interest should remain as status quo. After all, don’t fix it if it ain’t broke! | null | null | 2024-07-22 15:33 |
moneycontrol.com | https://www.moneycontrol.com/news/business/economy/energy-needs-to-grow-2-5-times-but-green-power-faces-hurdles-economic-survey-2023-24-12774812.html | Energy needs to grow 2.5 times but green power faces hurdles: Economic Survey 2023-24 | India aims to shift from conventional to non-fossil fuel energy sources, aiming for 50% of its power capacity from non-fossil fuels by 2030..Related stories. | India’s energy needs are expected to grow 2-2.5 times by 2047, given the growing economy, but the renewable energy sector still faces challenges, says the Economic Survey 2023-24 tabled by the government on July 22. India’s energy mix in 2022-23 was primarily dominated by fossil-fuel, accounting for almost 84 percent, including coal, oil, and natural gas combined. But the composition in the electricity sector has significantly changed with the government’s sustained push for renewable energy. The share of non-fossil power capacity stood at 45.4 percent as of May 2024 from around 32 percent in April 2014. “Considering that resources are limited, the pace of energy transition would need to factor in alternative demands on the resources for improving resilience to climate change and for sustained social and economic development. Achieving Net Zero by 2070 requires an orderly transition to a diversified mix of energy sources with a significant share of non-fossils and enhancement in energy production and usage efficiency,” says the document. “Phasing renewable energy into the country's energy mix is paramount in India’s drive towards cleaner energy sources,” it says. Renewable push The government’s push to boost the renewable energy sector has continued with recent initiatives like the PM-Surya Ghar Yojana launched in February 2024 with a total outlay of Rs 75,021 crore. This initiative alone aims to add 30 gigawatts (GW) of solar capacity and reduce 720 million tonnes of CO2 equivalent. India is also looking to set up offshore wind energy capacity to tap the potential, given its 7,600-km coastline. In an attempt to boost the offshore wind energy sector, the government approved a viability gap-funding scheme for the sector on June 19; it has identified several offshore zones and aims an initial capacity of 1GW. India has also undertaken the Green Hydrogen Mission which aims at a 5 MMT capacity by 2030. The scheme offers financial incentives to boost electrolyser manufacturing and production. Constraints for green hydrogen The Economic Survey flags some challenges that India faces in scaling up its renewable energy capacity. “India’s ambitious green hydrogen production target is subject to various constraints, including on the supply side, or the cost of production and delivery, and on the demand side, or the readiness to consume green hydrogen in traditional industrial processes,” the Survey says. The electrolysers and renewable energy used as inputs are the two major components of green hydrogen production cost. The cost of capital, water supply and treatment, storage and distribution, conversion of hydrogen to suitable derivatives, and an enabling infrastructure would also contribute to the final delivered cost of green hydrogen for any particular application,” the document says. Green hydrogen is produced using renewable energy which also makes it vulnerable to the issues faced by the sector like the issue of intermittency and the huge requirement of land for solar and wind energy. Challenges in green power India is steadily moving towards its commitment to shift from conventional to non-fossil fuel energy sources, aiming for 50 percent of its power capacity from non-fossil fuels by 2030. However, challenges persist, particularly in mobilising necessary finance and investment on competitive terms. “Gearing up the banking sector for arranging finances for larger deployment goals, exploring low-interest rate, long-term international funding, and developing a suitable mechanism for risk mitigation or sharing by addressing both technical and financial bottlenecks,” the Economic Survey suggests. Land acquisition continues to be a challenge, too. “Identification of land with renewable energy potential, its conversion (if needed), clearance from the Land Ceiling Act, decision on land lease rent, clearance from revenue department, and other such clearances take time. The state governments must play a major role in acquisition of land for RE projects,” the survey says. According to the National Electricity Plan of the Central Electricity Authority, non-fossil fuel, including hydro, nuclear, solar, wind, biomass, small hydro, pump storage pumps based capacity, which is around 203.4 GW, accounting for 46 percent of the total installed capacity in 2023-24 is likely to increase to 349 GW (57.3 percent) in 2026-27, and 500.6 GW (64.4 percent) in 2029-30. | null | null | 2024-07-22 15:24 |
moneycontrol.com | https://www.moneycontrol.com/news/opinion/india-needs-to-face-up-to-its-junk-food-crisis-12774831.html | India needs to face up to its junk food crisis | There is data suggesting junk food in India is worse than in many other countries..Related stories. | India is not the world’s healthiest country. Sadly, regulators seem determined to make the problem worse with each passing year. Urban Indians, especially wealthier ones, have a relatively sedentary lifestyle, and our diet is heavy in carbohydrates and fats. This may not show up easily in the numbers, given the size of the country’s population.Analysis in the Lancet recently found that about 23% of Indians were technically overweight, defined as a body mass index over 25. Many parts of the world, such as West Asia and Eastern Europe, do much worse. But, when you break the data down, worrying trends emerge. Women over 30, for instance, have startlingly high rates of abdominal obesity in India — with a prevalence of over 55% for women older than 40. That is a more dangerous indicator of predisposition to metabolic disease than regular BMI. Moreover, genetics seem to make Indians particularly vulnerable to such ailments. One scientist at the generic pharma major Lupin Ltd hasÂpointed out that Indians tend to have greater insulin resistance and develop Type II diabetes at a younger age than the average. The Lancet suggests that overÂ100 million Indians have diabetes, and 136 million are pre-diabetic. That’s a crisis — one that’s set to grow worse as India becomes richer and more urban. The problem is usually blamed on a change in the diets of middle-class Indians, from fresh to processed foods. The assumption is that packaged products are unhealthier. It’s right there in the name: “junk food.” I’m a tiny bit skeptical. I am addicted to Delhi’s deep-fried street food, and I am not so sure it is better for me than anything I could buy in a supermarket. At the same time, there is dataÂsuggesting junk food in India is worse than in many other countries, with higher levels of salt, sugar, and saturated fats. More importantly, packaged food can be regulated, so people at least know what they’re eating. Ideally, that would allow consumers to better manage their intake of fat and salt. There remains a lot of room for this transition in India. Nestle India Ltd.Âclaims that branded food makes up only a third of the Indian market but will expand at a compound annual growth rate above 12% in coming years. The question is whether regulators are up to the task. They recentlyÂannounced that nutritional information about sugar, salt and saturated fat would henceforth be displayed “in bold letters and relatively increased font size on labels of packaged food items.” The news was generally welcomed. In fact, it represented a significant climbdown. The new rules specify that this information will be estimated based on (arbitrary) serving sizes, and as a percentage of recommended daily intake. Translating this into “good” or “bad” requires a level of mental math that the average shopper likely won’t want to endure. The regulations replace a draft plan that would have imposed fewer requirements on shoppers but was still flawed. In 2022, officialsÂproposed a “star” rating, similar to the ones used to indicate if an appliance is energy-efficient. As scientistsÂpointed out, that merely “helps the consumer choose the least unhealthy option among a host of unhealthy options.” Critics worry that India’s food regulators respond more readily to big food companies than to doctors. The last time they backtracked on warning labels, they placated angry consumers by telling them a new adviser would study the issue — a man whom the New York TimesÂdescribed as leading an institution “almost entirely funded by the Goliaths of the agribusiness, food, and pharmaceutical industries.” The processed food industry is shooting itself in the foot. If companies want Indians to make the switch from mouth-watering street food, they ought to welcome greater transparency, so consumers can be certain they are choosing healthier alternatives. Better models are available even in India’s neighborhood. In Sri Lanka, for example, sodas are labeled with a “traffic light” system that goes from green (healthy) to red (godawful levels of sugar). Recent research hasÂshown that the system consistently steers consumers towards healthier choices. Indians need simple, easy-to-understand, and prominent warning labels, so that their better natures are given a chance to overtake their impulses. Otherwise, their richer country will only be an unhealthier one. Credit: Bloomberg | null | null | 2024-07-22 15:19 |
moneycontrol.com | https://www.moneycontrol.com/news/business/economy/india-needs-to-upgrade-iip-other-industry-statistics-to-aid-policy-making-12774773.html | India needs to upgrade IIP, other industry statistics to aid policy making | India needs to upgrade its industry statistics like IIP to aid policy making: Economic Survey 2023-24. | India needs to upgrade its statics on industrial production and other indicators such as credit disbursal to industries to support better policy- making, the Economic Survey 2023-24 tabled in Parliament on July 22 said. According to the survey, policy making will be aided through an updated index of industrial production (IIP), incorporating the vast changes that have occurred in India’s manufacturing landscape. “State level variants of such indices will help understanding the emerging geographical patterns,” the survey, presented a day ahead ofBudget, said. In addition to IIP, policy-makers will also be helped if they have access to regular indicators of the dynamics of production and employment in MSMEs, it said. The survey, prepared by the Economic Division of the Department of Economic Affairs in the Ministry of Finance and formulated under the supervision of the chief economic adviser, also highlighted changes in data on credit disbursal as another measure for better decision making. The survey recommended tracking statistics on industry-wise gross disbursement of bank credit as opposed to the data on outstanding credit currently available. It also called for tracking industry-wise monthly gross financial flows through domestic and external equity and debt routes as well as other financing sources. | null | null | 2024-07-22 15:10 |
moneycontrol.com | https://www.moneycontrol.com/news/business/airbus-shortlists-8-sites-for-h125-helicopter-final-assembly-line-in-india-2-12774766.html | Airbus shortlists 8 sites for H125 helicopter final assembly line in India | Airbus shortlists 8 sites for H125 helicopter final assembly line in India.Related stories. | European major Airbus has shortlisted eight sites in India for setting up its final assembly line for H125 helicopters and the ground-breaking ceremony for the facility is expected later this year. The facility, which will be the fourth Final Assembly Line (FAL) for the single engine H125, will initially produce up to 10 helicopters annually and the capacity will be ramped up depending on the market demand, Airbus officials said. "India is the market of the future for helicopters... at present, the market is extremely embryonic, it is very small compared to what the potential could be," Olivier Michalon, Executive Vice President, Global Business of Airbus Helicopters, said. The ground-breaking ceremony for the FAL is expected in October or November this year and the facility will be operational in 2026 and the delivery is anticipated to start towards the end of 2026. "We have identified eight sites which we are currently assessing. We are still in the final assessment stage. We should be in a position to announce it shortly. "We want to be attractive and in an ecosystem that is best suited for industrial activities, logistics, employees and of course, regulations," Michalon said at a briefing at Marignane last week. Marignane is the headquarters of Airbus Helicopters. For Airbus, H125 is the most-sold helicopter in India as well as the South Asia region. Airbus has projected the demand for H125 helicopters in India and neighbouring countries at 500 over the next 20 years. "We are targeting 10 helicopters per year and as the demand picks up we can ramp up," Head of Airbus Helicopters in India and South Asia Sunny Guglani said at the briefing. Michalon stressed that 10 might not sound like a lot and it could be 20, 30, or 50 in some years, depending on the market demand. "We manufacture, sell and support helicopters. Also, we manufacture, sell and support solutions. This is what we can provide. Make In India solutions," he said. Highlighting the success story of its narrow-body A320 aircraft, Michalon said, "H125 is our A320". H125 can carry up to six people. Airbus is also setting up the FAL for the C295 aircraft in Vadodara, Gujarat. There are around 350 civil and parapublic helicopters in India and South Asia (India, Nepal, Bhutan, Bangladesh, Sri Lanka and Maldives). Out of them, less than 250 helicopters are in service in India, as per Airbus. In India, there are about 100 Airbus helicopters, with the majority of them being H125 and 130s. There are more than 4,300 H125 helicopters flying around the world. "The FAL in India will not only make us competitive in terms of lead time, delivery time, it will also help us address the growth of the Indian market and possibly the demand from neighbouring nations. "This is an important, strategic decision and it will have an impact on our global footprint," Michalon said. A basic model of a H125 helicopter could cost around 3.2 million euros, according to a company official. In India, helicopters are used for tourism, pilgrimage, and medical services as well as by the energy sector and private entities. Once set up in India, the FAL for H125 helicopters will undertake the integration of the major component assemblies, avionics and mission systems, installation of electrical harnesses, hydraulic circuits, flight controls, dynamic components, fuel system and the engine. Besides, the FAL will do testing, qualification, and delivery of the H125 to customers in India and the region. About the Indian market, Michalon said the regulations are a bit restrictive but the company is working as if those regulations are going to lighten up a bit and the skies become more open. "Either we wait for the skies to be fully open and then it is a big rush by all helicopter manufacturers or we demonstrate our trust and recognition potential of India and be ready to invest," he said. In January, Airbus and Tata Group announced a partnership to set up India's first helicopter FAL in the private sector. The facility will be set up by Tata Advanced Systems Limited (TASL), along with Airbus Helicopters. | null | null | 2024-07-22 14:49 |
moneycontrol.com | https://www.moneycontrol.com/news/business/jakson-green-gets-rs-296-crore-credit-facility-from-first-abu-dhabi-bank-12774775.html | Jakson Green gets Rs 296 crore credit facility from First Abu Dhabi Bank | Jakson Green gets Rs 296 crore credit facility from First Abu Dhabi Bank. | Jakson Green on Monday said the company has secured a credit facility of Rs 296 crore from UAE-based First Abu Dhabi Bank. In a statement, the company said it will use the proceeds for the expansion of its international business beginning with investment in Uzbekistan. "Jakson Green has secured a credit facility of Rs 2.96 billion from First Abu Dhabi Bank. This financing will fuel the company's international expansion, with Uzbekistan serving as the first beneficiary for its upcoming solar photovoltaic (PV) and battery storage project," it said. The credit facility marks a significant milestone for its entry into Uzbekistan's renewable energy sector, as the company actively looks to expand its global reach in the Middle East, Africa, Commonwealth of Independent States (CIS) and Europe, the statement said. The project in Bukhara, Uzbekistan, includes the construction and operation of a 250 MW solar power plant coupled with an integrated battery energy storage system (BESS) of 63 MW/126MWh. Jakson Green is the renewable energy arm of Jakson Group. | null | null | 2024-07-22 14:46 |
moneycontrol.com | https://www.moneycontrol.com/news/business/economy/economic-survey-2023-24-here-are-the-key-highlights-12774621.html | Economic Survey 2023-24: Here are the key highlights | null | The Budget Session of Parliament has commenced today. On July 22, Union Finance Minister Nirmala Sitharaman presented the Economic Survey of India 2023-24, along with a statistical appendix, in both Houses of Parliament. She is scheduled to present the Union Budget for 2024-25 in the Lok Sabha on July 23. This marks the first Budget of the Modi Government's third consecutive term in office. Here are the key highlights of the Economic Survey 2023-24. Follow our live blog for the latest on the Economic Survey 2024Global Growth: 3.2% in 2023, impacted by domestic issues, geopolitical conflicts, and monetary tightening.India's Performance: Real GDP grew by 8.2% in FY24, maintaining strong momentum despite global challenges.Capital Formation: Rs 10.9 lakh crore raised in FY24, covering 29% of capital formation.Sector Transformation: Financial sector evolving with potential vulnerabilities; need for agile policy interventions.Inflation Trends: Core inflation fell in FY24, with retail inflation driven down. RBI projects 4.5% inflation in FY25.Global Pressures: Inflation affected by pandemic, geopolitical tensions, and supply disruptions.Trade Balance: Merchandise imports moderated; services exports rose by 4.9% to $ 341.1 billion.Debt Sustainability: External debt at 18.7% of GDP, with improved logistics performance.Growth Strategy: Focus on private investment, MSME growth, agriculture, green transition financing, education-employment gap, and state capacity.Sustained Growth: Potential for 7%+ growth with continued structural reforms and collaboration between government and private sector.Renewable Energy: Non-fossil sources constitute 45.4% of installed capacity.Green Bonds: Rs 36,000 crore raised in 2023 for emission reduction projects.Welfare Reforms: Ayushman Bharat scheme has generated 34.7 crore cards and covered 7.37 crore hospital admissions, saving over â‚ą1.25 lakh crore in out-of-pocket expenses.Labor Market: Unemployment rate at 3.2%; EPFO net payroll additions doubled in five years.Sector Growth: Livestock sector grew at 7.38% CAGR; fisheries sector at 8.9% CAGR.Tech Adoption: Digital Agriculture Mission and e-NAM for smart agriculture technologies.Industrial Growth: 9.5% growth in FY24; significant improvements in manufacturing, construction, and mining.Coal Production: Record 997.2 million tonnes produced, reducing import dependence. | null | null | 2024-07-22 14:38 |
moneycontrol.com | https://www.moneycontrol.com/news/business/economy/india-in-middle-of-private-capex-upcycle-aided-by-government-push-12774642.html | India in middle of private capex upcycle aided by government push | India in the midst of a private capex upcycle aided by government capex: Economic Survey 2024.Related stories. | India is in the midst of a private capex upcycle that has been aided by government capital expenditure, the Economic Survey 2023-24 has said. Gross Fixed Capital Formaton (GFCF) by private non-financial corporations increased by 19.8 per cent in FY23, the survey, citing data from the National Accounts Statistics 2024, released by the Ministry of Statistics and Programme Implementation (MoSPI), said. “There are early signs that the momentum in private capital formation has been sustained in FY24,” the survey added. Gross Fixed Capital Formation has emerged as an important driver of growth, as indicated in its rising share of nominal GDP, the survey noted. The Economic Survey added that data provided by Axis Bank Research showed that private investment across a consistent set of over 3,200 listed and unlisted non-financial firms grew by 19.8 percent in FY24. Moving forward, healthier corporate and bank balance sheets are expected to further strengthen private investment. “With cleaner balance sheets and adequate capital buffers, the banking and financial sector is well-positioned to cater to the growing financing needs of investment demand. Credit disbursal by scheduled commercial banks (SCBs) to industrial micro, small and medium enterprises (MSMEs) and services continues to grow in double digits despite a higher base,” the survey noted. However, credit offtake by large industries seems to be growing at a lower albeit stable pace, it added. According to the survey, the continuing momentum in government capex has begun to crowd in private investment. Sounding a Ha note of caution, the pre-Budgetdocument added that while it remains the government’s responsibility to facilitate the development of infrastructure and address logistical challenges, it is incumbent upon the private sector to take forward the momentum in capital formation on its own and in partnership with the government. “Between FY19 and FY23, the share of private non-financial corporations in overall GFCF increased only by 0.8 percentage points from 34.1 percent to 34.9 percent. This was mostly driven by their fast-increasing share in the additional stock of dwellings, other buildings and structures. Their share in addition to the capital stock in terms of machinery and equipment, started growing robustly only since FY22, a trend that needs to be sustained on the strength of their improving bottom-line and balance sheets in order to generate high-quality jobs,” the survey said. The survey said that the Indian private sector has to now receive the baton from the public sector and sustain the investment momentum in the economy. “The signs are encouraging,” it noted. | null | null | 2024-07-22 14:25 |
moneycontrol.com | https://www.moneycontrol.com/news/trends/travel/economic-survey-shows-rise-in-foreign-tourists-in-india-indicates-revival-in-tourism-12774536.html | Economic survey shows rise in foreign tourists in India, indicates revival in tourism | India sees increase in foreign tourist arrivals pin 2023, showed economic survey..Related stories. | In the post-pandemic period, India's travel and tourism sector has shown strong signs of revival with foreign tourist arrivals (FTAs), one of the laggards in this space, showing signs of growth, the Economic Survey 2023-24 highlighted. The industry recorded over 92 lakh foreign tourist arrivals in 2023, clocking a 43.5 percent year-on-year (YoY) increase. The tourism sector in India is rapidly expanding, with India being ranked 39th in the World Economic Forum's Travel and Tourism Development Index (TTDI) 2024, the survey said. India earned foreign exchange receipts of over Rs 2.3 lakh crore through tourism, indicating a 65.7 percent YoY increase. India's share of foreign exchange earnings in world tourism receipts increased from 1.38 percent in 2021 to 1.58 percent in 2022. Domestic tourism When it comes to domestic tourism, 29 new sites have been identified for development under the PRASHAD (Pilgrimage Rejuvenation and Spiritual Heritage Augmentation Drive) scheme which caters to the augmentation of tourism infrastructure at pilgrimage and heritage sites. Out of the total sanctioned amount of Rs 1,621.14 crore for the projects under the scheme, 62.7 percent has been disbursed, the survey added. The government has also revamped its Swadesh Darshan scheme in the form of Swadesh Darshan 2.0 with an outlay of Rs 3,800 crore. The mission aims to create a robust framework for the integrated development of tourism destinations. Under the scheme, 57 destinations across 32 state government and Union Territory administrations have been identified to date. Twenty-nine projects have been sanctioned at a total cost of Rs 644 crore. Job creation The economic survey also mentioned that India's travel and tourism (T&T) sector has been influenced by global inflationary pressures and delays in the recovery of T&T capacity, similar to other economies. However, the decline in price competitiveness since 2021 has been minimal compared to its peers, with only a 0.7 percent drop. India's decline is particularly slight at just 0.1 percent from the 2021 levels, which reflects the government’s consistent efforts to maintain stability despite the slowdown caused by the Covid-19 pandemic, the survey said. The World Economic Forum's TTDI (Travel & Tourism Development Index) 2024 report emphasises the need for improvements in tourist services and infrastructure, and the development of a skilled workforce. In a challenging environment for employment generation in services due to the rise of AI and manufacturing due to rising protectionism, transportation costs and supply concerns, the tourism sector represents a relatively low-hanging fruit for job creation, according to the survey which added that India has to seize this opportunity. To formalise employment within this sector, the Ministry of Tourism has initiated the Incredible India Tourism Facilitator Certificate Programme. This programme aims to create a skilled cadre of tourist facilitators nationwide through a digital platform that offers online learning opportunities and certification courses, the survey added. | null | null | 2024-07-22 14:15 |
moneycontrol.com | https://www.moneycontrol.com/technology/draft-deep-tech-startup-policy-to-address-funding-infrastructure-constraints-article-12774623.html | Draft deep tech startup policy to address funding, infrastructure constraints | India's draft deep tech startup policy was released for consultation on July 2023. | The upcoming National Deep Tech Start-up Policy (NDTSP), which has been in the pipeline since mid 2023,┬Āaddresses barriers such as limited funding, resource and infrastructure constraints, and risks associated with emerging technologies, the Economic Survey, tabled in Parliament on July 22, said. In July 2023 , a draft National Deep Tech Startup Policy (NDTSP) was released for stakeholdersŌĆÖ comments. It is aimed at addressing the challenges confronting deep tech startups through definitive policy interventions to create a conducive ecosystem. "It (the draft policy) intervenes by designing funding mechanisms that embrace the concept of ŌĆśfailing by designŌĆÖ, conducting funding awareness programs for start-up founders to diversify their funding sources, establishing a centralised core mission office to streamline approval processes and facilitate intellectual property protection, fostering awareness in Tier 2 and 3 cities, and designing a monitoring mechanism based on mapping key performance┬Āindicators," the pre-Budgetsurvey said, Earlier, it was reported that the deep tech startup policy may be announced in the Budget.Moneycontrol┬Āalso reported how the deep tech startup policy┬Āwas┬Ālikely to feature in the government's 100-day agenda after the elections. ŌĆ£The Department for Promotion of Industry and Internal Trade (DPIIT) is formulating and finalising the cabinet note, since they have the startup domain. The policy tries to define deep tech startups and create a policy regime tailored towards helping them. Once the policy is approved, then there will be talk about specific schemes, on a separate funding window, whether it is a fund of funds or something else that is a little down the line. But as of now, the cabinet note is in the final stages,ŌĆØ an official had earlier toldMoneycontrol. | null | null | 2024-07-22 14:14 |
moneycontrol.com | https://www.moneycontrol.com/news/business/economy/india-has-created-21-saas-unicorn-since-2014-12774494.html | India has created 21 SaaS unicorns since 2014, per Eco Survey 2024 | Economic Survey on SaaS.Related stories. | The demand for scalable and efficient cloud solutions has led to the growth of Software-as-a-Service (SaaS) startups, resulting in India creating around 21 unicorns since 2014, the Economic Survey 2024, tabled in Parliament by Finance Minister Nirmala Sitharaman on July 22, said. "The strength of the Indian tech start-up ecosystem lies in its large pool of start-ups, unicorns, and ability to scale," the survey, which gives a detailed account on the economy, its prospects and the policy challenges, added. The highlights on SaaS in the survey comes amid increased growth and interest within India's SaaS ecosystem from investors.Follow our live blog for the latest on the Economic Survey 2024 The Indian SaaS industry is poised to grow by 2.5X to reach a revenue if $26 billion by the end of 2026 despite a current slowdown due to tight macroeconomic pressure and a stiff funding winter, a recent report by VC firm Chiratae in collaboration with Zinnov said. In 2022, the government initiated projects such as 'Meghraj' for accelerating service delivery. Also read:Economic Survey pegs FY25 GDP growth at 6.5-7% Meghraj is the government’s cloud computing initiative to accelerate delivery of e-services in while optimising the Centre’s ICT spending. It ensures optimum utilisation of the infrastructure and speed up the development and deployment of eGov applications. | null | null | 2024-07-22 14:13 |
moneycontrol.com | https://www.moneycontrol.com/news/business/economy/india-to-seek-licences-to-scout-pacific-ocean-for-critical-minerals-12774681.html | India to seek licences to scout Pacific Ocean for critical minerals | India to seek licences to scout Pacific Ocean for critical minerals.Related stories. | India will apply for licences to explore for deep-sea minerals in the Pacific Ocean as it competes to secure supplies of minerals critical for energy transition technologies, a top government scientist told Reuters. The UN-backed International Seabed Authority (ISA) has issued 31 deep-sea exploration licences, including two for India in the Indian Ocean, but is yet to allow mining because the 36-member body is still working on regulations. The 36-member ISA council is meeting in Jamaica this month to negotiate the latest draft of a mining code. M. Ravichandran, the top scientist at India's Ministry of Earth Sciences, said his ministry will work closely with India's mining industry as it readies to apply next year for exploration of seabed minerals in the Pacific. India's critical minerals plans in the Pacific have not been previously reported. China, Russia, and some Pacific Island nations have already secured exploration licences for the Pacific Ocean. India plans to focus on the Clarion-Clipperton Zone, a vast plain between Hawaii and Mexico known to hold large volumes of polymetallic nodules containing minerals used in electric vehicles and solar panels including manganese, nickel, copper, and cobalt. First discovered by British sailors in 1873, the potato-shaped nodules take millions of years to form. RESERVOIR OF MINERALS Unlike China, India lacks seabed mining expertise and will take at least three to four years before it is ready to extract minerals from the ocean's depths, experts said. "We have done a lot of work on the deep sea mining technology but not perfected (it). In that aspect, we are not yet ready," said M. Rajeevan, former chief of India's Ministry of Earth Sciences. Opponents of deep-sea mining say that not enough is known about its impact on marine ecosystems. "I am not confident that current technologies and methods can overcome the environmental concerns," said Pradeep Singh, an ocean governance specialist at the Research Institute for Sustainability in Potsdam, Germany. Some 27 countries have called for a moratorium or suspension of all ocean mining-related activities, but some Pacific nations including Nauru and Cook Islands favour deep-sea mining. Nauru is expected to submit a mining license application to the ISA on behalf of Canada's The Metals Company later this year. India also expects to receive two more exploration permits from the ISA this year for the Indian Ocean, focused on the Carlsberg Ridge and Afanasy-Nikitin Seamount regions, known for polymetallic sulphide deposits and ferromanganese crusts, Ravichandran said. The permits last for 15 years, according to the ISA website.Polymetallic sulphide deposits contain metals such as copper, gold, silver and zinc. Ferromanganese crusts are known for cobalt, nickel, manganese, platinum and rare earth elements among other resources. India, which relies on imports of raw materials such as copper and lithium, has listed 24 minerals as "critical" for energy transition. It is also scouting for overseas mineral assets to meet its rising green energy requirements."This is like racing," Ravichandran said of the urgency to seek seabed minerals. | null | null | 2024-07-22 14:12 |
moneycontrol.com | https://www.moneycontrol.com/news/business/economy/economic-survey-sets-balanced-tone-india-on-track-to-be-developed-economy-says-niti-aayogs-suman-bery-12774603.html | Economic Survey sets balanced tone; India on track to be developed economy, says Niti Aayog’s Suman Bery | Bery noted that India's growth-inflation trade-off in recent years has been more favorable than that of many other economies..Related stories. | Niti Aayog vice chairman Suman Bery praised the Economic Survey 2024 for its balanced and sober tone, saying India was on track to be developed country in next 25 years. In an exclusive interview to CNBC-TV18, Bery said theBudget, to be presented on July 23, was hopeful that some of the key themes highlighted in the survey would be included in the government. India could become a developed economy within the next 25 years, capitalizing on its demographic dividend and significant productivity increase. India could become a global provider of financial services despite its current lower credit-to-GDP ratio, the vice chairman of the government think tank. Bery stressed on the importance of protecting retail investors from potential adverse effects due to movements by savvy foreign investors.Follow our live blog for the latest on the Economic Survey 2024 India's consistent long-term average growth rate of approximately 6 percent over the past few decades reflected significant supply-side developments. "Can we elevate our growth from 6-6.5 to 8 percent or more? he said." According to Bery, substantial productivity gains can be achieved by better managing the labour force. Despite diplomatic tensions, he envisioned a future where the Indian and Chinese economies could become more integrated, he said. India's services sector is already a vital part of the global value chain, Bery said underscoring the segment’s role in economic growth and global positioning. | null | null | 2024-07-22 14:10 |
moneycontrol.com | https://www.moneycontrol.com/news/business/coal-india-bags-first-critical-mineral-asset-12774631.html | Coal India bags first critical mineral asset | Coal India bags first critical mineral asset.Related stories. | State-ownedCoal Indiaon Monday said it has bagged the first critical mineral asset, a graphite block, in Madhya Pradesh. Owning a graphite asset will give Coal India an advantage in powering green energy transition momentum to an extent, according to a statement. "Coal India Ltd (CIL) has successfully opened its account in domestic critical mineral asset emerging as the preferred bidder for Khattali Chotti graphite block in Alirajpur district of Madhya Pradesh," the PSU said in the statement. The company accounts for more than 80 per cent of domestic coal output. With the bagging of this mine, CIL has made its foray into the first-ever non-coal mineral mining venture, the coal behemoth said. "This was under tranche two forward auction held on 9th July by the Ministry of Mines," it said. The company won the bid quoting a mining premium of 150.05 per cent of the value of mineral despatch, which it would pay to the state. CIL will formally receive the letter of intent once it deposits performance security. Further, a composite license will be issued to CIL in a year after the company meets the formalities under the notice inviting tender timeline. The block was put for sale in the second tranche of the critical mine auction. "CIL under its diversification portfolio won the bid. With this, CIL is poised to play a supporting role in critical minerals domestically," it said. The country imports about 69 per cent of its graphite needs - natural, synthetic and end-use products. Currently, the graphite mining industry has limited players, offering space for willing players to venture into this business arena. Graphite has its utility as an anode material in lithium-ion battery manufacturing due to its relatively low cost and energy density. With the electric vehicle market and energy storage systems fast gaining traction, where lithium-ion cells are used, graphite has a big market. The market size for graphite is projected to take a big leap with the absolute demand projected to shoot up at the rate of 25-27 per cent by FY35 from the current level. The PSU had earlier said it is mulling the mining of critical minerals. | null | null | 2024-07-22 13:59 |
moneycontrol.com | https://www.moneycontrol.com/technology/economic-survey-flags-lack-of-demand-indigenous-tech-competitive-market-in-indias-space-sector-article-12774557.html | Economic Survey flags lack of demand, indigenous tech, competitive market in India's space sector | India sends its 100th satellite in space: India's Polar Satellite Launch Vehicle, in its forty second flight (PSLV-C40), successfully launched the 710 kg Cartosat-2 Series Satellite for earth observation and 30 co-passenger satellites together weighing about 613 kg at lift-off on Friday. PSLV-C40 was launched from the First Launch Pad (FLP) of Satish Dhawan Space Centre (SDSC) SHAR, Sriharikota. (Reuters).Related stories. | The Economic Survey, tabled in Parliament on July 22, hailed India's burgeoning space sector growth while acknowledging challenges such as gaps in indigenous technology development and uncertain long-term demand. Highlighting milestones like Chandrayaan-3's moon landing and advancements by private space startups, the report underscores the sector's role in the government's strategic agenda. The Economic Survey, tabled by Finance Minister Nirmala Sitharaman on July 22, said that the country boasts a fleet of 55 active space assets, catering to various needs like communication, navigation, Earth observation, meteorology, and scientific research. This strong foundation positions India for further exploration and innovation in the exciting realm of space. The Economic Survey, mainly observed challenges in the sector, when it came to the adoption of space technology, lack of technology needed for indigenisation, lack of competitive marketplace and so on. "Adoption of space-based technology and services are often related to their adequate integration into the societal applications, towards meeting the requirements of end users," the Economic Survey said. "Major technological areas wherein a developmental gap exists include the development of Indigenous capability for the realisation of carbon fibres, dedicated captive semiconductor fab for space applications, availability of major alloying elements, etc." it added. Other challenges, the Economic Survey said, for the sector include, in commercialisation of such technologies, availability of a competitive marketplace, pricing constraints, limited demand, and lack of visibility of long-term demand. Other than that, the survey said that Indian National Space Promotion and Authorisation Centre (IN-SPACe), India's space regulator, has received 440 applications as of January 1, 2024, from more than 300 Indian entities pertaining to authorisation, handholding, facility support and consultancy, technology transfer, and facility usage. | null | null | 2024-07-22 13:55 |
moneycontrol.com | https://www.moneycontrol.com/news/business/economy/steep-interest-rates-uncertain-tax-policy-may-limit-fdi-flows-into-india-economic-survey-12774538.html | Steep interest rates, uncertain tax policy may limit FDI flows into India: Economic Survey | Economic survey has cautioned banks on rampant misselling.Related stories. | Higher interest rates as well as considerable subsidies for industries in developed economies may limit the growth of foreign direct investment (FDI) flows into India, noted the Economic Survey for 2023-24. Elaborating on the reasons behind a not to favourable environment for growth in FDI, the survey said that since interest rates in developed countries are much higher than they were during and beforeCovid years, it gives investors a higher opportunity cost to invest abroad. And on top of that, emerging economies have to now compete with active industrial policies indeveloped economies involving considerable subsidies that encourage domestic investment, the survey added. The Economy Survey was released on July 22, a day before Finance Minister Sitharaman is scheduled to present theBudgetfor the ongoing financial year. Net FDI inflows to India declined from $42.0 billion during FY23 to $26.5 billion in FY24. However,in gross terms the moderation was by only 0.6 per cent in the previous fiscal year. Falling FDI inflows into the country has been a matter of concern for the government. Infact, DPIIT Secretary Rajesh Kumar Singh in an interview to Moneycontrol back in April too attributed the fall to geopolitical instability and sticky inflation in some developed markets coupled with higher interest rates. The survey said that despite the impressive strides made in the last decade, uncertainties and interpretations related to transfer pricing, taxes, import duties and non-tax policies remain to be addressed. "Lastly, geopolitical uncertainties, which are on the rise, will likely exert a bigger influence on capital flows, notwithstanding other reasons for preferring to invest in India." While, highlighting the downsides of FDI inflows into India going ahead, the survey did mention that the moderate fall in gross terms shows that investor sentiment towards the country remains unchanged. The fall in FDI inflows was primarily on account of repatriation of investment as many private equity investors took advantage of buoyant equity markets in India and exited profitably. "It is a sign of a healthy market environment that offers profitable exits to investors, which will bring newer investments in the years to come," the survey added. | null | null | 2024-07-22 13:55 |
moneycontrol.com | https://www.moneycontrol.com/news/business/economy/private-capital-formation-slows-down-amid-caution-over-cheaper-imports-economic-survey-12774403.html | Private capital formation slows down amid caution over cheaper imports: Economic Survey | Capex push to be cautious. | Private capex may take a little more to pick up after good growth over the last three years, as companies turn cautious, given the fears of countries exporting excess capacity at lower rates to India, said the Economic Survey 2023-24 on July 22. “There are early signs that the momentum in private capital formation has been sustained in FY24,” it said. Gross fixed capital formation was an important driver of growth in FY24, with the segment expanding in double digits. “GFCF by private non-financial corporations increased by 19.8 percent in FY23. There are early signs that the momentum in private capital formation has been sustained in FY24,” the survey noted. It said that with healthy balance sheets, banking and financial sector was well poised to cater to growing financing needs. “Improved balance sheets will help the private sector cater to strong investment demand.” The survey pointed out that households have also been party to this growth, with housing sales indicating a push for capital formation. The government’s capex increased nearly 30 percent in FY24, and is likely to continue in FY25 as well, according to experts. | null | null | 2024-07-22 13:46 |
moneycontrol.com | https://www.moneycontrol.com/news/business/economy/around-77-companies-liquidated-under-ibc-were-already-defunct-says-economic-survey-12774442.html | Around 77 % companies liquidated under IBC were already defunct, says Economic Survey | According to the Survey, over 3000 companies have emerged out of the Corporate Insolvency Resolution Process (CIRP) as of March 2024.Related stories. | The Economic Survey of India which was made available on July 22 revealed that around 2,476 companies went to liquidation under the Insolvency and Bankruptcy Code (IBC) as of March 2024. "Around 77 per cent of these corporate debtors were defunct at the beginning of the process and were, on average, valued at 7 per cent of the outstanding debt," the survey said. According to the survey, liquidation gives the last window of opportunity for the revival of a company. It said "Around 50 businesses have been rescued at this last resort. 586 firms were dissolved at the end of the liquidation process, releasing whatever resources were needed for alternate uses." The IBC was introduced to strengthen the corporate insolvency regime. The code introduced timeframes for resolving corporate insolvencies. The survey revealed that the eight years since it was introduced in 2016, 31,394 corporate debtors involving a value of Rs 13.9 lakh crore have been disposed of (including pre-admission case disposals) as of March 2024 Threat of loss of control pushing promoters to settle cases: As per the IBC, the control of the company, once admitted to resolution process will be taken from the existing management and will be given to the creditors of the company. The report noted that this threat has driven promoters to settle cases even before the National Company Law Tribunal (NCLT) could pass an order in the case. It said "The loss of control immediately after admission into the resolution process has led debtors to settle with creditors as soon as the applications are filed..... A singularly notable fact is that Rs 10.2 lakh crore of underlying defaults were addressed at the pre-admission stage." The survey noted that the change in debtor behavior is a big boon to the banking sector. It said "The Code has created an optimal incentive-disincentive mix to facilitate above-board and transparent dealings in creditor-debtor relations." IBC brought Rs 3.36 lakh crore realisable value in 8 years According to the Survey, over 3000 companies have emerged out of the Corporate Insolvency Resolution Process (CIRP) as of March 2024. IBC, which was introduced in 2016, uses the CIRP to resolve and rescue a company from its financial burdens. The Survey said "IBC has facilitated the successful closure of 4,131 CIRPs until March 2024. 3,171 corporate debtors have been rescued, of which 947 cases have been resolved through approved resolution plans, which brought in a realisable value of Rs 3.36 lakh crore." According to the Survey, creditors recovered approximately 32 per cent of their claims in these case. This amounted to a recovery of 85 per cent of the fair value and 162 per cent of the liquidation value of asset. 3000 businesses emerged out of CIRP : "More significant to the real sector is that over 3,000 businesses have emerged out of the CIRP, with continued business operations extending the productive use of resources trapped due to financial distress in these corporate debtors," the survey said. It further stated that a study conducted by Indian Institute of Management (IIM) Ahmedabad showed that companies that recovered from the CIRP witnessed a significant improvement in their performance terms of increase in tangible assets and average capex.. It said " the aggregate market valuation of resolved firms rose from around Rs. 2 lakh crore in the pre-resolution phase to ₹6 lakh crore in the post-resolution phase." Furthermore, there has been a substantial after the resolution. | null | null | 2024-07-22 13:43 |
moneycontrol.com | https://www.moneycontrol.com/technology/e-kyc-cost-down-from-rs-1000-to-less-than-rs-6-economic-survey-2024-article-12774537.html | E-KYC cost down from Rs 1,000 to less than Rs 6: Economic survey 2024 | Representative image. | The use of Aadhaar card services has significantly eased the electronic Know Your Customer (e-KYC) process for organisations, while reducing the cost from around Rs 1,000 ($12) to less than Rs 6 (6 cents), the Economic Survey 2024 showed. KYC is one of the most vital process for financial institutions and businesses to get information like identity, addresses, phone numbers, etc. of customers. This is done to get a better understanding of the their identity and prevent fraudulent activities. Typically, varied forms of identification documents can be used to electronically verify the customer’s credentials. However, amongst all, Aadhar card has remained the most convenient and commonly used. “Aadhaar has been instrumental in transforming India's authentication ecosystem. It has facilitated the KYC process, reducing the cost of conducting e-KYC from USD 12 to 6 cents, extending banking to millions of Indians and improving financial inclusion,” the survey said. The survey also highlighted advances made in 'Digital Financial Inclusion (DFI)' by leveraging India Stack, which has enabled millions to accept payments, settle invoices, and transfer funds anywhere in the country with just a few screen taps. Among the three critical components of India stack--identity, payment and data governance—Aadhar has been an important in the identity layer, the Survey said. | null | null | 2024-07-22 13:39 |
moneycontrol.com | https://www.moneycontrol.com/news/business/economy/economic-survey-nudges-states-to-speed-up-implementation-of-labour-codes-12774528.html | Economic Survey nudges states to speed up implementation of labour codes | Further, the survey highlighted that there exist other regulatory hurdles to employment generation such as higher overtime wage premiums and barriers to job opportunities for women..Related stories. | The Economic Survey has nudged states to expedite the enactment of labour codes, saying rules needed to implement them have not been framed or notified. Finance Minister Nirmala Sitharaman tabled the survey, often described as the economic report card of the government, in Parliament on July 22, a day ahead of theBudget. The Industrial Relations Code, Code on Social Security, and Occupational Safety, Health and Working Conditions Code were passed by Parliament in 2020. In the Monsoon Session of 2019, the Code on Wages was passed but the rules necessary for their implementation have not been formulated and notified since then. “Labour” is in the Concurrent List of the Constitution and the power to make rules is entrusted with the Centre and states. There is also a need for pre-publication of rules by states in their respective official gazette for public consultation.Follow our live blog for the latest on the Economic Survey 2024 The survey said 32 states and union territories (UTs) pre-published their draft rules under the Code on Wages, 2019, 30 the Industrial Relations Code, 2020, 31 the Code on Social Security, 2020 and the 31 did it for Occupational Safety, Health and Working Conditions Code. The survey also pointed to other regulatory hurdles such as higher overtime wage premiums and barriers to job opportunities for women in way of employment generation. “A comparison with other countries reveals that India’s stricter overtime wage regulations are potentially hindering the growth of the manufacturing sector by driving production to nations with lower overtime costs,” the survey said. “The 10 most populous states collectively impose 139 prohibitions on women from participating in factory processes such as electroplating, petroleum generation, manufacturing of products such as pesticides, glass, rechargeable batteries etc,” it added. The survey said India prescribes higher floor space per worker on a factory floor compared to other countries. An Indian factory with 1,000 square metres (sqm) of usable floor space can employ up to 82 more workers if India were to adopt Malaysia’s standard. Increases in space requirements can discourage the expansion of factories, it added. | null | null | 2024-07-22 13:29 |
moneycontrol.com | https://www.moneycontrol.com/news/opinion/prioritising-a-stable-and-simple-tax-regime-in-budget-2024-to-enhance-ease-of-doing-business-12774514.html | Prioritising a stable and simple tax regime in Budget 2024 to enhance ease of doing business | Businesses are now calling for stable and simplified tax laws to enhance the ease of doing business..Related stories. | By Gokul Chaudhri In the World Bank’s Doing Business Report 2020, India's ranking improved significantly, jumping 79 spots from 2014 to reach 63rd out of 190 countries. This progress underscores India's commitment to regulatory reforms, faster approvals, streamlined imports/exports, and reduced compliance burdens, all aimed at fostering transparency and accountability in business operations. Recent tax policies, including corporate tax rationalisation and Goods and Services Tax (GST), have driven significant tax buoyancy, resulting in record-high revenues. Businesses are now calling for stable and simplified tax laws to enhance the ease of doing business and support India’s growth trajectory. Approximately 67 percent of industry leaders, according to a Deloitte Survey, anticipate this to be a key focus in the upcoming budget. A stable and pragmatic tax policy is crucial for sustainable business expansion and increased foreign investments, reducing uncertainty caused by frequent policy changes and disputes. Simplified tax structure:Navigating India’s tax structure has long been a formidable task for businesses, impacting their operational efficiency and overall ease of doing business. There is a pressing need to shift the tax paradigm from focusing on rates to prioritising revenue generation. This transformation can be achieved through moderate tax rates and an expanded tax base, aligning with the vision of 'Developed India' by 2047. Simplifying the tax structure could entail implementing a unified rate for businesses, while individuals can benefit from a straight forward 2 to 3 tier-rate structure featuring low or moderate rates, eliminating surcharges, cesses and maximising deductions. With the rising inflation, the current standard deduction limit of INR 50,000 is insufficient to cover the escalating costs and expenses associated with higher standard of living. There is a strong expectation for a higher linked standard deduction. Additionally, suspending tax compliance requirements during maternity or other significant life events would significantly reduce the compliance burden for individuals, particularly women. There is also a necessity to reform the capital gains tax framework by simplifying rules concerning asset holding periods, varying tax rates, and indexation benefits. India also has an extensive and daunting withholding tax regime - Tax Deduction at Source (TDS) and Tax Collection at Source (TCS) - on domestic transactions. This TDS/ TCS regime raises the compliance cost and resource burden on businesses in India. There are challenges for vendors/ buyers in availing withholding tax credits. The use of technology to substantially increase information collection and use by the government for monitoring and compliance should also be an opportunity for reducing the compliance burden on taxpayers. The existing GST database can be leveraged by the Government to restrict the scope of transactions subject to TDS/ TCS to only those transactions that are not captured under GST. Besides reducing the scope of transactions on which TDS/TCS is imposed, there is also scope to standardize the TDS/TCS rates and thresholds for the transactions that will still remain subject to TDS/ TCS. Reducing unwarranted litigation:Even though India ranked overall at 63 in the World Bank’s Report on Doing Business, it still ranks below 100 on 3 of the 11 indicators used to compute the overall rank of countries. These are enforcing contracts (163), registering property (154), and paying taxes (115). Enforcing contracts and paying taxes are areas where a weak dispute resolution procedure weighs heavily on the business environment in India. Tax disputes in India have risen significantly over the past few years. Many disputes are overturned on appeal, highlighting the need to eliminate unnecessary aggressive assessments. Despite measures like the Vivad Se Vishwas Scheme (VsV), increasing monetary thresholds for filing appeals, high litigation rates continue to plague the business environment. Addressing this requires robust mechanisms to resolve both current and future tax disputes swiftly and efficiently. * Only taxpayer to appeal before tribunal: Restricting appeals before tax tribunals to only taxpayers, as seen in other countries like the US and UK, would enhance efficiency and reduce bureaucratic hurdles. *ÂUsing GenAI: Technological advancements, such as generative AI (GenAI) and the deployment of legal bots, present an opportunity to revolutionise tax administration processes. These tools can be extensively trained on legal precedents. Taxpayers' submissions could be digitally analysed by these machines, enabling the tax administration to receive a proposed order based on a thorough analysis of both legal principles and factual data. This approach not only facilitates timely case resolution but also enhances the quality of decisions made. Another potential application could be reimagining the VsV to offer customised settlement terms to taxpayers based on assessments made by GenAI regarding the gravity of the case. Unlike the previous VsV, which primarily relied on whether an appeal was filed by the taxpayer or tax department, this updated approach could offer favorable terms when GenAI identifies a strong taxpayer case, and vice versa. * Strengthening alternate dispute resolution: Reintroducing faceless tax settlements, while leveraging technology tools would promote faster dispute resolutions and also address concerns related to discretionary practices historically associated with tax settlements. Additionally, avenues like mediation and arbitration should be explored which is an established practice in countries such as the UK and US. * Enhancing APA procedures: Refining APAs to ensure tax certainty and reduce compliance costs involves procedural improvements such as e-filing, expedited processes, and streamlined post-APA compliance. Transition to digitisation:The Government has been proactive in developing both physical and digital infrastructure recently, with plans to sustain this momentum. Industry leaders strongly advocate for advancing digitisation through an online single-window system to streamline administrative procedures, reduce paperwork, and expedite necessary approvals. Cybersecurity and regulatory compliance remain critical concerns, highlighting the need to address security risks and ensure regulatory adherence in digital initiatives across industries. Advancing research and development (R&D)initiatives is crucial for driving economic growth, technological advancement, and global competitiveness. Evaluating India's current R&D funding landscape and its outcomes is essential to maximise its impact. The government is anticipated to focus on investment reforms to attract capital for manufacturing and R&D, aiming to boost production scale and competitiveness. Promoting R&D within domestic companies and fostering global R&D services in India to cultivate a skilled talent pool will accelerate innovation, particularly in advancing semiconductor technology. The upcomingUnion Budgetfor fiscal year 2024-25, themed 'Viksit Bharat', aims to outline India’s path to becoming a developed nation by 2047. Ensuring policy consistency and implementing crucial reforms to improve the business environment are critical to achieving this goal. Emphasising a stable and simplified tax regime, along with effective dispute resolution mechanisms, move towards digitisation and advancement of R&D initiatives will enhance India’s global competitiveness in terms of ease of doing business and enable efficient resource allocation for sustained economic growth. Gokul Chaudhri is President, Tax, Deloitte India. Views are personal and do not represent the stand of this publication. | null | null | 2024-07-22 13:20 |
moneycontrol.com | https://www.moneycontrol.com/news/business/economy/pli-scheme-expansion-will-help-lower-trade-deficit-12774402.html | PLI scheme expansion will help lower trade deficit | Trade deficit to lower.Related stories. | The external conditions are likely to remain steady for India with trade deficit declining further as the government expands the production linked incentive scheme and "creates a globally competitive manufacturing base in several product categories", the Economic Survey 2023-24 said. India’s current account deficit reduced to 0.7 percent of the GDP in FY24, as the country posted a surplus in the last quarter of the fiscal. "India needs to focus on improving its competitiveness in many product areas. For example, India has tremendous potential in becoming a large global exporter in agricultural commodities. The reduction in trade deficit from 2 percent in the previous fiscal follows from a reduction in trade deficit as commodity prices normalised in FY24, as services and remittances trade boomed for the country," noted. In the fourth quarter, current account returned to surplus after a hiatus of 11 quarters. Discounted crude oil from Russia has kept crude import bill contained for India. Meanwhile, service exports have boomed. On the inflows front, while foreign direct investment has slumped, portfolio inflows have more than compensated for the decline. Also read:Govt unveils 'Amrit Kaal' growth strategy, here are six key focus areas India’s FII are expected to stay high, point experts, as FDI recovers. “FII inflows which are $3.5 bn so far this fiscal are expected to be around $25 bn getting the support through the debt inflows on account of bond inclusion ($2.3 bn so far plus another $18 bn expected),” said SBI researchers in a latest note. | null | null | 2024-07-22 13:09 |
moneycontrol.com | https://www.moneycontrol.com/news/business/economy/inflation-economic-survey-2023-24-12774397.html | Short-term inflation outlook benign, says Economic Survey | Economic survey on food inflation.Related stories. | The external conditions are likely to remain steady for India with trade deficit declining further, as the government expands the production linked incentive scheme and "creates a globally competitive manufacturing base in several product categories", the Economic Survey 2023-24 said. Current account deficit (CAD) stood at 0.7 percent of the GDP in FY24, as the country posted a surplus in the last quarter of the fiscal. The deficit was at 2 per cent in FY23. "India needs to focus on improving its competitiveness in many product areas. For example, India has tremendous potential in becoming a large global exporter in agricultural commodities. Also read:Economic Survey pegs FY25 GDP growth at 6.5-7% The reduction in trade deficit from 2 percent in the previous fiscal follows from a reduction in trade deficit as commodity prices normalised in FY24, as services and remittances trade boomed for the country," the survey, tabled by Finance Minister Nirmala Sitharaman in Parliament, said. Follow our live blog for the latest on the Economic Survey 2024 In the fourth quarter, current account returned to surplus after 11 quarters. Discounted crude oil from Russia has kept crude import bill contained for India even as service exports, which bring in foreign exchange, have boomed. On the inflows front, while foreign direct investment has slumped, portfolio inflows have more than compensated for the decline. India’s FII are expected to stay high, point experts, as FDI recovers. “FII inflows which are $3.5 bn so far this fiscal are expected to be around $25 bn getting the support through the debt inflows on account of bond inclusion ($2.3 bn so far plus another $18 bn expected),” said SBI researchers in a recent note. | null | null | 2024-07-22 13:08 |
moneycontrol.com | https://www.moneycontrol.com/news/business/economy/india-must-strike-right-balance-in-goods-and-capital-imports-from-china-economic-survey-2023-24-12774401.html | India must strike right balance in goods and capital imports from China: Economic Survey 2023-24 | Economics Survey on FDI. | India needs to strike the right balance between goods and capital imports from China, said the Economic Survey 2023-24, highlighting how the country can take advantage of the China-plus-one strategy. India’s foreign direct investment fell to its lowest level in five years at $71 billion in FY24, according to data released by the ministry of commerce. India slipped seven ranks to 15 in the World Investment Ranking in 2023 as FDI inflows fell 43 percent, a report released by the United Nations Conference of Trade and Development on June 20 showed. The country ranked second with 163 international project deals signed in 2023, with the US leading the league at 334. In terms of greenfield projects, India was ranked fourth with 1,058 projects, after the US, UAE and the UK. India moved up the ranks in terms of outflows as well, with the country ranking 20th in 2023 compared with 23rd a year back. Outflows increased to $15 billion from $13 billion in the previous year. | null | null | 2024-07-22 13:05 |
moneycontrol.com | https://www.moneycontrol.com/news/business/fineotex-chemical-raises-rs-342-55-crore-through-issue-of-shares-warrants-12774505.html | Fineotex Chemical raises Rs 342.55 crore through issue of shares, warrants | Fineotex Chemical raises Rs 342.55 crore through issue of shares, warrants. | Fineotex Chemical Ltd, which manufactures speciality chemicals, on Monday said it has raised Rs 342.55 crore through the issue of equity shares and warrants on a preferential basis. In a regulatory filing, the company announced the closure of "fund raising of Rs 342.55 crore through a preferential allotment of equity shares and convertible warrants". "This preferential allotment aligns with the initial tranche of our fund raised on May 22, 2024, amounting to Rs 124.4 crore. The cumulative funds raised from both tranches now total Rs 342.6 crore," Sanjay Tibrewala, CFO and Executive Director at Fineotex Chemical, said. "The capital raised will be invested strategically to support both organic and inorganic growth opportunities, reinforcing our commitment to enhancing shareholder value and advancing operational excellence," he said. | null | null | 2024-07-22 12:57 |
moneycontrol.com | https://www.moneycontrol.com/news/business/economy/india-needs-to-add-7-9-million-jobs-annually-till-2030-says-economic-survey-2023-24-12774400.html | India needs to add 7.9 million jobs annually till 2030, says Economic Survey 2023-24 | Economic Survey on jobs. | The Indian economy needs to add 7.85 million jobs every year until 2030 in the non-farm sector, according to the Economic Survey 2023-24. The total additions to the workforce at 46.7 million in 2023-24 were the highest since 1981-82, with the rate of growth at 6 percent also outpacing the previous three decades, according to recent data released by the Reserve Bank of India using its KLEMS database. Formal employment data released by the government last month showed that over 31 million people entered the formal workforce for the first time in FY24. Out of these, 21 million joined the Employees’ State Insurance Corporation, and another 10 million joined the Employees’ Provident Fund Scheme. A July survey by the NCAER and the NSE found that employment outlook has improved for the next two quarters, with companies looking to hire more. The recently released PMI surveys also highlighted a similar phenomenon, with job creation rising fastest pace in decades, after a slow pace in FY24. | null | null | 2024-07-22 12:47 |
moneycontrol.com | https://www.moneycontrol.com/news/business/companies/higher-the-capex-in-budget-the-better-pes-happiest-ever-from-capital-market-exit-momentum-jm-financials-vishal-kampani-12774421.html | 'Higher the capex in Budget, the better; PEs happiest-ever from capital market exit momentum': JM Financial's Vishal Kampani | JM Financial's Vishal Kampani.Related stories. | 'We will see $150 bn of issuances across IPO's , block deals and secondary offerings in the next seven years in India which is the second most exciting market in the world after the US.' That's the word coming in from top dealmaker and non-executive vice chairman of JM Financial Vishal Kampani, who is batting for higher capex spends inBudget 2024even as he hopes for a simplified capital gains tax regime across asset classes. In an exclusive interview with Moneycontrol's Ashwin Mohan, Kampani adds that global private equity funds are happier than ever with the exit momentum from India's capital markets and will continue to acquire more firms than corporates going ahead. He also predicts more MNC IPO's on the domestic bourses and greater consolidation in the financial services segment even as he alludes to the Birla vs Adani m&a tussle in the cement space. Importantly, in his first reaction to the media post regulatory action from the RBI and Sebi, an optimistic Kampani says JM Financial has been working very well with the regulators and is expecting an early resolution. (Edited Excerpts) Vishal, if you look at the recent poll results, it was a weaker-than-expected mandate for the the BJP. Therefore, is there any sort of nervousness in the investor community with regards to populist pressure in Budget 2024? My take is that the BJP has always been standing tall for responsible growth. A big part of responsible growth is being fiscally prudent and I do not think that they will move away from this kind of feature that they've shown across the last 10 years of being in power. Look at the data points from FDI and FII flows, especially FDI flows: billion dollars, April 1st to date, but $6 billion in the last five weeks, which is post the election. So, the momentum of capital coming into the country has been more positive and more strong post-elections. So if there was a bit of nervousness around this, large investors would wait and watch. They haven't done that. At the same time, there is no doubt that we need more rural spending. We need more capital expenditure. If these are thoughtfully planned, and if it puts a little bit of pressure on the fisc, I think India with the size of its economy today can easily sustain it. I do not see investors being overly concerned about the same. There is a cushion from the RBI's more than generous dividend- a record Rs 2.11 lakh crore rupees and the tax buoyancy in the system. In April, you saw GST collections topping 2 lakh crores for the first time. Do you think these twin metrics will give the government the much-needed window to go all guns blazing when it comes to higher capex spending? If you look at the interim budget earlier this year, the government raised the capex target to 11.11 lakh crore rupees. CII president and ITC head honcho, Sanjiv Puri is pushing for a 25% hike. Which side of the fence are you on? So again, I think fiscal prudence is important. At the same time, as I said earlier , government capex is very, very critical. And if you look at the number of approximately 11 lakh crores versus 9 lakh crores last year, just the difference in these two numbers, the capex is more than the absolute money in capex spent 10 years ago by the government. So, these numbers are huge. I would be more on the side of Sanjiv Puri and say, higher the capex, the better. Let's shift our focus to a monster that rears its head before every budget, and that is the fear of changes to our capital gains tax regime. The same worries seem to have resurfaced in some quarters. Do you think Budget 2024 will see any tinkering or changes to the existing capital gains tax regime? As it stands, the current regime is a smorgasbord of different rates and different holding periods based on asset classes. So, do you expect any streamlining this time? It's actually anybody's guess, to be honest. But I think the latter part of your question is very interesting. I think streamlining it, making it very simple, making it fair across various investor classes will be appreciated. But in the long term, not tinkering too much with taxation is always very beneficial when a country needs capital for growth. And I think the government understands that very well. So, I think they will be very responsible, and they will be very thoughtful when they make any changes in tax. You made a fair point regarding tax policy because we're all aware of the impact of the controversial retrospective tax amendment which dampened investor sentiment till the government stepped in. A very unconventional view came in recently from Chris Wood of Jefferies who said that India does not need a capital gains tax regime and he cited the example of jurisdictions like Hong Kong which have benefited. How would you respond ? No, I don't agree. I think we cannot call India a completely developed market. We have a lot of sections in our own society. We have rural, which can face difficulties simply because the monsoons can be bad. So the government has to have a balancing act. The government always should have reserves and a large part of those reserves are earned when there are parts of the economy doing well, who are paying tax. Capital gains tax is a big part of that. So, I don't think doing away with capital gains tax is something I would agree with. According to the RBI 2023-2024 annual report, net FDI flows, fell to $10.6 billion from $28 billion a year ago. That was on account of a rise in repatriation of FDI from India. Some market observers believe this is because PE's are selling and the government should do more to lure FII's. In this backdrop, do you expect any liberalization measures from the FM or any changes to FDI caps for certain sectors? I'll take a bit of time to answer that. So you've addressed or tried to address a question here with two large pools of capital. And I would say both these pools of capital are extremely important for India. The first is the private equity pool of capital. The private equity pool of capital has a horizon, which is five to seven years in nature. And then you have the second pool of capital, FDI, which is strategic in nature. And the third, is the FPI, which is the mutual funds, the global insurance companies, who are putting in secondary market capital into India. So both these, you know, the private equity & FDI and the FPI pools of capital are very important and both are nurturing India's growth. There was a big boom in private equity and venture capital investing post-COVID. For two years post-COVID, there was a big boom. But you saw valuation skyrocket in the private side. And a lot of money came in. But that money systematically also needs an exit. The total pool of private equity that's invested in India today, compared to some of the larger markets in the world is still very small. If you look at the top 10 private equity funds in the world and the amount of capital they have deployed in Western countries, India is still a pretty small percentage, but it's growing very fast. Therefore, exits become extremely critical. For them to be able to exit, show the exits to their LPs ( limited partners), allows them to bring in more money for growth. Now, coming back again to the cycle, post the cycle of valuations on the private side, you're seeing a cycle of valuations being higher on the public market side today. Therefore, companies in India are preferring to raise capital from the public market side. So, the primary issuance activity has gone up. When we look at our own deal pipeline or ECM pipeline, it's at an all-time high today. The number of mandates we have, the number of transactions we've just done, it's an all-time high. But this capital also when raised in primary form by corporates is going in for capex. If not, capex is going in for debt reduction, which will improve earnings and cash flows in companies again, which will be invested back into the capital sector. So, I think both these sort of sources of capital, whether it's FDI and PE in one bucket, and FPI in the other bucket, both are very critical, and both are a bit cyclical. I feel that as a banker, and I work with all of the large global private equity clients in the country, and I don't think they've ever been happier in terms of the amount of exit momentum that they've seen in India, from India's capital market. If I take you back in history, 10 years to 15 years, a large part of these exits were strategic in nature.You wouldn't have had a big-bang Coforge block deal?No chance. So today, the Indian capital markets are actually giving large private equity abroad an exit. This will bring three times the money into India in the next five to seven years from the same pools of capital. So it's a big positive. I would not see the year 2023-24 in isolation. I think returning money back, and where does large part of this money come from? It's come from domestic mutual funds, family offices, and domestic retail in India. So it's not private equity buying private equity. Many of these large block trades that you're seeing, take the case of one large block trade we did last year, the biggest investor was a domestic mutual fund. So, we're seeing that continuously. I think this whole emergence of domestic capital and savings being channelized through mutual funds and insurance companies has become a big dominant force. This is great for the country's capital market. Let's speak about the IPO market in India. That's also seeing a lot of buoyancy. If you look at data from FactSet, last year, India hit a nine-year IPO high, with 238 listings raising $7.38 billion. That's music to the ears of bankers like you. What is your take on some of the key IPO trends this year? I've noticed that the issue sizes have gone up considerably. And not only that we had a record $3 billion filing by Hyundai India. Who would have thought that was possible sometime back? As I said earlier, we have our biggest IPO pipeline that we've had in the history of the firm. I think you will see many record-breaking years in terms of India being part of the global IPO story over the next five to seven years. There is a big momentum, again, private equity, have invested over $300 to $400 billion in the last six to seven years in so many companies. Even if that money is growing at mid-teens, that's $700 to $750 billion of exit. So even if 20 per cent of that were to happen through capital markets, it's a $150 billion pipeline. It's $150 billion of issuance that we're going to see in the next seven years. So there'll be IPOs, there'll be blocks, there'll be secondary offerings. And this is just 20 per cent of the pie. So, India's capital market is going to evolve in many ways. It will be one of the most exciting capital markets to be in for the rest of this decade. If you ask me, after the US, it is the most exciting market in the world.Do you expect more MNC IPOs being launched in India? I think so. See, MNC firm valuations in India are way higher than their global counterparts where they're listed. So I cannot imagine that there is any board anywhere in the globe who's looking at these valuations and is not going to push the management in India to think about India listing. Lets also get your thoughts on some of the sectors where you see maximum IPO activity, and then we'll move into M&A. I was reviewing our entire quarter two business just a few weeks ago and I was seeing the breadth that we are seeing in terms of issuance. It's phenomenal. We're seeing it in industrials, infrastructure, hotels, real estate, pharma, healthcare. The breadth is very, very strong. So maybe barring consumer or one of the sectors that don't need that much capital, but there again, where private equity is invested, they are secondary sellers. So we've never seen this kind of breadth and it also reduces the cyclicality of being focused on two or three sectors. Look at metals and mining. You saw a rise in commodity prices and we closed a billion dollar transaction for Vedanta recently, right? Things are moving very fast because the capital is available. Thanks to our regulators, we have very high disclosure standards. You have got domestic capital both in the form of mutual funds and family offices with global capital competing for these blocks and these QIPs. I think it's a phenomenal space. And as I said, 7 billion is just the start, it's nowhere close to where we'll see this market in the next five to seven years. Let's shift focus to M&A. You operate in the financial services space and that's a segment which has seen a lot of activity in the last few months. There do you expect maximum M&A action going ahead in India over and above financial services? Yes, you are seeing the action in cement... There are cement wars going on... Yes, you have got two large players who are consolidators, who want to increase their presence and both have very strong balance sheets. So why would they stop in a fast growing market economy, which is expected to be $7.5 trillion by 2030. I mean if you pay 20 per cent more for an asset today, it's nothing, right? You're going to make it up very easily by the time you grow out at 6.5 per cent to 7 per cent over five to seven years. So that's the underlying trend where you consolidate. I think financial services in certain sectors needs to see more consolidation. Affordable housing finance will see much more consolidation. The entire MSME lending space will see more consolidation. Microfinance companies, they will see more consolidation. You won't just see consolidation in terms of these companies merging into themselves or like-minded companies, you will also see a lot of these becoming part of larger banks. Understand one thing, banks are growing at 15 per cent, 16 per cent. There is a temporary fight for deposits which should resolve because right now you have an equity market which is booming. But banks growing at 15 per cent, 16 per cent, there has not been any relaxation in priority sector norms. So imagine the same large, 10, 12 banks in the country growing at 15 per cent, 16 per cent. And that means their asset base is doubling in five years. That means their priority sector lending requirements need to double in five years. Are they growing their branch infrastructure or are they growing their physical presence in terms of adding assets? They could be growing digitally to add liabilities, but may not be growing their infrastructure to add assets in the priority sector. Therefore, microfinance companies, affordable housing finance companies, all of these platforms become a very interesting place, even from a banking perspective, for consolidation. So, financial services will see a lot of consolidation and a lot of new investment. We expect credit growth to be in the mid-teens for at least the next five to seven years. So it will be a great sector. In cement, there is consolidation happening in a different form because there are two large houses, both very cash rich and with strong balance sheets who want to increase their market share. So there will be different reasons in different sectors. Hotels, you're not seeing consolidation between large players with strong cash flows, but you are seeing a lot of consolidation of unique or standalone hotels , which are being acquired by a larger group. Even listings Listings will increase because in a space like hotels or a space like healthcare, there's not been that much of capex in the last 15 years., So many of those markets are actually underserved. And the Modi government has done a phenomenal job in terms of connectivity. They've connected all of India and they're doing it rapidly. Just look at the number of airports, roads and India, from a tourism perspective, has everything to offer. I mean, I keep telling my kids and my friends that why do you need to go abroad for a holiday? India has right from Kashmir, all the way down south to Goa to our beaches, you want to take a pilgrimage, you want to go to for a mountain holiday, we have everything. So once the country gets connected and we have more infrastructure, you are going to have more people who are going to prefer domestic tourism, who want to take more vacations. So hotels will boom. Hotels is an asset class, I think you need to own for the next 10 years. Let's also talk about the business houses and diversified conglomerates in India. When do you see the big conglomerates stepping in and signing these big checks frequently to compete against the global private equity funds? It's actually a bit of an apples to orange comparison. See, corporates, first of all, will be very sector focused. So if you take JSW and Adani, they're more infra. JSW of course, is steel. So consolidation will really play out in some of those sectors. Whereas, the kind of private equity capital looking at India today is pretty wide. It ranges from the road sector or the hotel sector in terms of infrastructure, or to consumer to pharma to financial services. . So you will see on a continuous basis, more deal activity from private equity, you will see sector by sector activity from the corporates. But do I feel that corporates will surpass private equity generally in terms of acquisitions over the mid-term in India? No, my answer is private equity will buy more companies and they will pay up. They will be a little bit more aggressive when it comes to buying quality. And they also underwrite to sell. So in those five to seven years, they are able to make the case that a sector is doing really well, we're getting in the right time, and we'll find that exit window. While a corporate will take a 10 to 15 year horizon to really buy a business. So sometimes both those lenses cannot even compete on valuation. Recently, there's been regulatory action against JM Financial from twin regulators, the RBI and the market regulator SEBI. Has there been any progress in terms of resolving these issues or any remedial measures that have been recommended by these twin regulators? Could you give us a quick update? Yes, absolutely. So we've been working very well with the regulators and provided them a lot of data and I'm expecting an early resolution. | null | null | 2024-07-22 12:24 |
moneycontrol.com | https://www.moneycontrol.com/news/business/hdfc-banks-unit-seeks-up-to-300-million-in-offshore-loan-12774418.html | HDFC Bank’s unit seeks up to $300 million in offshore loan | HDFC Bank’s unit seeks up to $300 million in offshore loan. | A unit ofHDFC BankLtd., India’s largest private sector lender, is planning to borrow as much as $300 million, according to people familiar with the matter, as tighter rules by the nation’s central bank restrict domestic avenues. HDB Financial Services Ltd. is in talks with a group of global and local banks to finalize the terms, said the people, who asked not to be identified because the discussions are private. Non-banking finance companies are increasingly tapping credit market overseas after the Reserve Bank of India limited domestic funding sources for them. Manappuram Finance Ltd., Muthoot Finance Ltd. and Piramal Capital & Housing Finance Ltd. are among shadow financiers who have borrowed overseas this year. HDB Financial offers a range of secured and unsecured consumer loans. The debt’s tenor may range from three to five years, with the pricing linked to the Secured Overnight Financing Rate, the people said. The funds will be raised under the central bank’s external commercial borrowing route, which caps the interest rate at 500 basis points over the benchmark rate. The final terms could change as the borrower aims to sign the deal bilaterally with one of the banks it is currently in talks with, the people said. HDB Financial did not respond to Bloomberg’s request for comment. | null | null | 2024-07-22 11:54 |
moneycontrol.com | https://www.moneycontrol.com/news/business/earnings/dodla-dairys-net-profit-jumps-86-to-rs-65-crore-in-q1-stock-hits-52-week-high-12774341.html | Dodla Dairy's net profit jumps 86% to Rs 65 crore in Q1; stock hits 52-week high | The shares of the company were trading at Rs 1,271.25, higher by 9.52 percent on NSE at 11:35 am. The stock had opened at Rs 1,169.7 and touched its 52-week high of Rs 1,346.1 before paring some gains on the stock exchange.. | Dodla Dairyon July 22 reported a strong growth in the firm’s first quarter results, driving the stock price of the company to 52-week high during the morning trade. The Hyderabad-based dairy company’s net profit jumped 86.24 percent to Rs 65 crore in the three-month period ended June 30, compared to Rs 34.98 crore reported in the same period of the previous financial year, the company said in an exchange filing. The company had reported a net profit of Rs 46.8 crore in the March quarter, the filing showed. The shares of the company were trading at Rs 1,271.25, higher by 9.52 percent on NSE at 11:35 am. The stock had opened at Rs 1,169.7 and touched its 52-week high of Rs 1,346.1 before paring some gains on the stock exchange. The revenue from operations jumped 10.7 percent to Rs 911.6 crore in the reported quarter over Rs 823.4 crore in the same period of the previous financial year, according to the company statement. | null | null | 2024-07-22 11:50 |
moneycontrol.com | https://www.moneycontrol.com/news/business/zydus-lifesciences-gets-mexican-regulatory-nod-for-cancer-treatment-biosimilar-12774393.html | Zydus Lifesciences gets Mexican regulatory nod for cancer treatment biosimilar | Zydus Lifesciences gets Mexican regulatory nod for cancer treatment biosimilar.Related stories. | Zydus Lifesciences Ltd on Monday said it has received marketing approval from the Mexican regulatory authority for its biosimilar product -- Bhava, used in the treatment of certain types of cancers. Mexican regulatory authority COFEPRIS (Federal Commission for the Protection Against Sanitary Risk), has granted marketing approval for Bhava, a Bevacizumab biosimilar and it will be marketed in different strengths of 100 mg/4 ml and 400 mg/16 ml, Zydus Lifesciences said in a regulatory filing. Bhava is used in the treatment of metastatic colorectal cancer (mCRC), non-squamous non-small cell lung cancer, metastatic breast cancer, glioblastoma, advanced and/or metastatic renal cell carcinoma and ovarian cancer patients, it added. Zydus Managing Director, Sharvil Patel said the approval granted by COFEPRIS is the company's first biosimilars for patients in Latin America. "To bring in greater access and affordability to patients battling critical ailments, we have been developing a pipeline of biosimilars, specifically in oncology. Precision diagnostics and access to affordable therapies are empowering millions of patients in their fight against cancer in India," he said, adding with Bhava, the company would begin a new journey of supporting patients with need-based therapies in Latin America. Citing a WHO report of 2020, the company said out of the total cancer cases reported in Mexico, breast, prostate, colorectal and thyroid were amongst the common cancer cases registered. Zydus said it had developed and launched the Bevacizumab biosimilar developed in-house by the research team at the Zydus Research Centre (ZRC) in 2015 in India under the brand name 'Bryxta'. Since then, an estimated 50,000 patients have been treated with the therapy, Zydus said, adding with 12 lifesaving biosimilars already launched in the market, it has been bridging the unmet need for affordable therapies in the fight against cancer in India. | null | null | 2024-07-22 11:47 |
moneycontrol.com | https://www.moneycontrol.com/news/opinion/understanding-the-origins-of-modi-governments-economic-philosophy-ahead-of-budget-2024-25-12774292.html | Understanding the origins of Modi governmentŌĆÖs economic philosophy ahead of Budget 2024-25 | State policies are based on a mixture of political, social, economic and military considerations..Related stories. | (Sanghnomics is a weekly column that tracks down and demystifies the economic world view of Rashtriya Swayamsevak Sangh (RSS) and organisations inspired by its ideology.) As we get ready for the Unionbudget 2024-25 that is scheduled to be presented on 23 July, we can expect a continuity in keeping ŌĆśAatmanirbhar BharatŌĆÖ as the guiding principle of the Modi governmentŌĆÖs economic policy. Aatmanirbhar Bharat implies India needs to be self-reliant. This has been the foundation of Prime Minister Narendra ModiŌĆÖs governance model since he assumed the charge in 2014. Thengadi and his ŌĆśThird WayŌĆÖ Aatmanirbhara Bharat is an outcome of an economic philosophy laid down by Dattopant Thengadi, an ideological stalwart of Rashtriya Swayamsevak Sangh (RSS), an ideological mentor of the Bharatiya Janata Party(BJP). Thengadi called it ŌĆśThird WayŌĆÖ. He started talking extensively about it from the 1950s. Thengadi was the founder of Bharatiya Mazdoor Sangh BMS), IndiaŌĆÖs largest labour organisation. He also founded Bharatiya Kisan Sangh(BKS), the largest farmersŌĆÖ organisation of India and Swadeshi Jagaran Manch(SJM), a policy advocacy group with strong impact. All these organisations have been working in their respective field for promotion of ŌĆśAtmanirbhar BharatŌĆÖ much before the BJP even came to power at the Centre. Thengadi and his philosophy of ŌĆśThird WayŌĆÖ guides their policies, perspectives and on ground actions. What is ŌĆśThird WayŌĆÖ To put it simply, neither capitalism, nor socialism/Marxism can provide solutions to India and the worldŌĆÖs social and economic problems. There has to be a ŌĆśThird WayŌĆÖ based on ŌĆśDharmaŌĆÖ and the central Hindu paradigm of ŌĆśVasudhaiva KutumbakamŌĆÖ (the whole world is one family). Thengadi outlined in his seminal work ŌĆśThird WayŌĆÖ (Sahitya Sindhu Prakashan; second edition;1998) how Bharatiya perspective is fundamentally different from the Western framework of economics and why we need an indigenous economic philosophy. ŌĆ£In the materialist West, it was believed that matter is basic and the mind is only a superstructure. Consequently, socio-economic order was basic. Once an appropriate order is established corresponding psychological changes in the popular mind would follow automatically. That this belief was not correct has been proved now beyond doubt,ŌĆØ says Thengadi. He further explains the contours of a new global order based on ŌĆśThird WayŌĆÖ: ŌĆ£Defining the proposed new global order according to 'Third Way', Thengadi says, ŌĆ£Dharma envisages autonomy of each human group to seek its social-fulfilment through its own unique paradigm, and psychological integration of all such groups in a common framework of harmonious and mutually complementary interrelationships of One World -Vasudhaiva Kutumbakam- each group enriching the common, human understanding by making its own characteristic contribution to the collective wisdom of humanity.ŌĆØ Here it is important to understand that Dharma shouldnŌĆÖt be equated with religion. The former is a set of eternal values that promote co-existence of all living and even non-living beings in the universe while the latter denotes a particular way of worship. Thengadi interestingly quotes Pandit Jawaharlal Nehru in ŌĆśThird WayŌĆÖ(pp21) referring to a foreword he had written (dated 25 May 1964) for a book by Shriman Narayan. Thengadi writes, ŌĆ£Even Pt. Nehru wrote just two days before his sad demise: ŌĆśIn India, it is important for us to profit by modern technological processes and increase our production both in agriculture and industry. But in doing so, we must not forget that the essential objective to be aimed at is the quality of the individual and the concept of Dharma underlying it.ŌĆÖ " Thengadi forecasted the disastrous consequences of following foreign models of development as he wrote that for more than a century we followed the western pattern of industrialisation. For more than a century we followed the western pattern of industrialisation. Like in the West, in our country too, people are flooding to the urban areas. This has given rise to social situations unprecedented in our history, viz., disintegration of family and villages' wealth under the pressure of urbanisation; absence of wholesome community life in industrial areas; bad and inadequate housing; slums; paucity of clean drinking-water, industrial accidents, illiteracy; self-alienation of individuals who have shifted from the rural to the urban areas; individualisation of industrial life; lack of social and moral values on the part of villagers psychologically uprooted from their natural social environment; inability to adjust the strains of new life-style under the impact of western civilisation; imbalance in sex ratio; lack of balance between the material and nonmaterial advancement. Swadeshi is manifestation of patriotism According to ŌĆśThird WayŌĆÖ philosophy, ŌĆśSwadeshiŌĆÖ which forms the core of the concept of ŌĆśAatmanirbhara BharatŌĆÖ is a manifestation of patriotism. Proponents of Swadeshi are not prepared to endorse the view that the western paradigm is the universal model of progress and development worthy of being followed by all the peoples of the world. While they recognise the fact of cultural intercourse, they insist that every people have their own distinct culture, and the model of progress and development for each country should be consistent with its own cultural ethos. Westernisation is not modernisation. Modernisation should be in keeping with the spirit of national culture. The proponents of ŌĆśSwadeshŌĆÖ and ŌĆśThird WayŌĆÖ oppose the move for steam-rolling all the various cultures and national identities in the world in favour of the West. The ŌĆśThird WayŌĆÖ model also believes that the principle of ŌĆśFree TradeŌĆÖ has failed and the world needs to have a relook at the modern economic theories of comparative advantage in international trade. Thengadi has quoted several experts including Paul Krugman and Winfried Ruigrok who have pointed out the failure of free trade doctrine that is at the foundation of the western economic models. Ruigrok poses an interesting question. Why do governments sometimes choose not to comply with the free trade norms? The answer to this question reveals, according to him, a fundamental flaw in the postulates of the free trade doctrine. Contrary to its fundamental premise, the efficient allocation of scarce resources has never been, and will never be, the sole consideration in the choice of state policies. State policies are based on a mixture of political, social, economic and military considerations. National security and preservation of the internal order have been, and will remain, more important concerns than maximising efficiency. Earlier Sanghnomics columns can be┬Āread here. | null | null | 2024-07-22 11:08 |
moneycontrol.com | https://www.moneycontrol.com/news/opinion/byjus-was-the-problem-not-edtech-12774096.html | Byju’s was the problem, not edtech | India needs edtech, superior to Byju’s in terms of corporate governance and fiduciary responsibility..Related stories. | Following Byju’s fall from being India’s most valued Unicorn to being sued for insolvency, there is a growing perception that edtech, as a sector, should be shunned by capital and talent. This would be a mistake. One mismanaged company should not damn an entire sector. India needs technology to revamp its education sector and realise its demographic dividend. Online coaching for intensely competitive entrance examinations is but one area for the deployment of technology in the education sector. And it is the one service that is most is most likely to be at the receiving end of outrage and anger, if the stress produced by preparing for intensely competitive entrance examinations leads on to despair and self-harm, including of the terminal kind, by some exam takers. There is a case for vastly increasing the number of premier technical and medical educational institutions at the college level, and reducing the competition to get placed in a few elite institutions. A generalised increase in quality across-the-board is necessary to prevent wasting much adolescent passion and health in coaching and cramming to gain admission to an elite handful of institutions. China’s restrictive approach to coaching China put severe restrictions on supplementary coaching, in terms of how late into the evening it can rob students of rest, recreation and one another’s company, and of how much can be charged for coaching. Chinese restrictions went as far as to limit capital raising opportunities for companies in the edtech sector. This is extreme. India needs edtech, superior to Byju’s in terms of corporate governance and fiduciary responsibility, and in terms of the technology as well. The world has left behind it the reassuring era, in which what someone learned at school or college stood them in good stead for a lifelong career. Skilling never stops Today, skills that were unheard of in the past decade crop up and grow in importance over a short time horizon, and disappear into obsolescence, just as fast, as newer ones take over. People need to reskill and upgrade what they know all through their career, if some algorithm or robot is not to eat their respective jobs. And edtech would be the mainstay of constant skill upgradation and retraining. We need more, and constantly evolving edtech, to keep our talent always contemporary and flexible. Search for an online course to learn a little more on anything, whether wine, Shakespeare, probability or Natural Language Processing, you will find a massive open online course waiting for you, and offered by a university from the West. There is no reason to cede this space of supplementary education to foreign firms. Artificial Intelligence opens up the possibility of sharply reducing the cost of evaluating academic outcomes in such online courses. Indian companies must thrive in the space. For that, there must be startups, venture capital to fund them, and top-notch talent to staff them. Schools are more, not less important But for students to be able to take advantage of online courses, they should have learned to learn, during the course of their formal schooling at whatever level. If, instead, they merely learned some pre-defined stuff and even used coaching, online and offline, to that end, but did not learn the art of critical inquiry and constant expansion of their mental horizons, the best online courses for skill upgradation and further study would be of little avail. The education system, at large, fails India’s young in multiple ways. For one, it even fails to teach them enough of anything, in quantity or quality. This is why, year-after-year, surveys of education report high-school students who cannot read at Class 3 levels or divide a three-digit number by, say, 8. Students complete high school without learning anything much. Thanks to the vagaries of our education system, some of them go on to college and graduate, only to join the army of those dubbed unemployable. This is tragedy at the level of the individual and costly squandering of our potentially massive demographic dividend, at the level of the economy and the nation. Edtech can complement schools This should not be allowed to continue. Our schools must be rendered functional. And edtech can play a very useful role in that process. A primary use would be to measure individual progress in a large class of students with differing abilities and different levels of attained proficiency, with a view to identifying the laggards and assisting them to catch up. Students who move up through different levels of schooling, without having mastered what they are supposed to learn at the early levels, end up with low comprehension of what they are supposed to learn at higher levels, particularly in subjects like maths and science that build upon prior learning to develop an understanding of more advanced concepts. The only way for a country like India, with limited resources and an enormous student population, to make real progress in education is to deploy tech to assist teachers in continual monitoring of the scholastic achievement of individual members of their class, locate shortcomings and take steps to remedy them. That tech, which would replace once-a-year exams with continuous evaluation, needs to be developed, and that calls for attracting investment and talent. Edtech has not become redundant. Rather, it gains in salience with every step the world, and therefore, India, take towards and into the expanding knowledge economy. Let not our disappointment over one fallen star stop us from seeing all those points of light that point us to the future. | null | null | 2024-07-22 10:08 |
moneycontrol.com | https://www.moneycontrol.com/news/business/companies/morning-scan-all-the-big-stories-to-get-you-started-for-the-day-751-12774188.html | Morning Scan: All the big stories to get you started for the day | A roundup of top newspaper stories to keep you informed and ahead of the curve..Related stories. | #1. Amazon sounds out IPO-bound Swiggy to buy out quick commerce platform Instamart Amazon India has approached food delivery platform Swiggy for a potential deal involving its quick commerce business under Instamart, the Economic Times reported. The development comes on the heels of Swiggy confidentially filing draft documents with the market regulator for a Rs 10,414 crore IPO, among the largest for a new-age internet firm. Why it’s important:The talks may not lead to a transaction since Swiggy is unlikely to sell only its quick commerce biz and Amazon might not interested in the food delivery space where expansion is plateauing. #2. AM Green charting roadmap to invest $1 billion in setting up two bio-ethanol plants AM Green is planning to invest $1 billion for its second-generation biofuels foray by setting up two bio-ethanol plants, the Mint reported. The company also plans to acquire 50 percent stake in Assam Bio Refinery from Finnish companies Fortum Oyj and Chempolis Oy. It has already signed exclusivity agreements for these transactions. Why it’s important:Building biofuels plants would mark a new venture for AM Green in line with its aim to be present across green hydrogen and ammonia, e-methanol, sustainable aviation fuels and high-value chemicals. India has a biofuel roadmap targeting 20 percent ethanol blending in petrol by 2025-26. #3. Corporate honchos pinning hopes on capex, jobs and reforms for nationalbudget A majority of India’s CEOs expect the budget to increase spending on infrastructure, speed up economic reforms and focus on rural areas, consumption and job creation, the Business Standard reported. A dipstick survey of 20 CEOs showed 95 percent expect the budget to continue the focus on infrastructure. Similarly, 80 percent expect the government to continue with economic reforms to drive growth and investment. Why it’s important:increased spending on infrastructure has been a consistent theme in the budget in recent years. State capital spending is yet to be matched by private sector capex though. #4. Government working on five-year action plan to boost exports to $2 lakh crore by 2030 The department of commerce is working on a five-year action plan to provide the building blocks for attaining the goal of exporting $2 lakh crore worth of goods and services by 2030, the Hindu Businessline reported. This plan will build upon the government’s 100-day agenda roadmap and go beyond. Why it’s important:The focus areas of the action plan is likely to include expansion and diversification of products and markets, particularly for small and medium-sized enterprises, improve logistics and ease of doing business and bring down transaction time and costs. #5. Tata Communications begins deploying first set of AI chip supplied by Nvidia Tata Communications has begun deployment of the first set of artificial intelligence chips from Nvidia within the company, managing director and CEO A S Lakshminarayanan told the Mint. Select customers will be among the first to get the chips as availability increases by the end of the year, he said. Why it’s important:The digital infrastructure provider is investing heavily in building AI capabilities. It is building an AI cloud in India in partnership with Nvidia, which would give it the first mover advantage. #6. Fiscal first quarter results of IT firms hint at better fiscal outlook that preceding year The first quarter results of Indian IT services sector indicate better fiscal growth than the preceding financial year, the Business Standard reported. Among the top companies like Tata Consultancy Services, Infosys, HCLTech and Wipro, it was Infosys that has performed better, which was also evident in its full-year revenue guidance. Why it’s important:It is still too early to say whether this is green shoots of business expansion recovery. To be sure, there is still some time for the industry to be firing on all cylinders. #7. Local beer makers battle for higher market share as big boys focus on premium segment More than a dozen local mass-priced beer brands from British Empire, Godfather, Cobra and Khajurahuo have clawed a combined market share of 4 percentage points from two of India's biggest players United Breweries and AB InBev that together control more than two-thirds of the overall beer segment, the Economic Times reported. Why it’s important:This is a reversal of the decade-old trend where the two large brewers and Carlsberg gradually increased their share to dominate the market. The big boys have now shifted focus to higher margin premium brands. #8. JSW Infrastructure strengthening logistics muscles by bolstering depot and terminal network JSW Infrastructure is working towards strengthening its logistics infrastructure through a network of inland container depots, container freight stations and rail terminals, the Hindu Businessline reported. It has acquired a slurry pipeline from group firm JSW Utkal to boost connectivity for its upcoming port at Jatadhar in Odisha. It is also acquiring a majority stake in Navkar Corporation that owns three container freight stations, has a pan-India container train operator license and a fleet of railway rakes and inland container depot in Morbi, Gujarat. Why it’s important:These moves by the ports operator will enable it to tie up with shipping lines and create a transshipment hub. The aim is to ultimately become a complete logistics supply chain provider. #9. India’s legal startups building case for increased play of third-party funding market From funding the corporate insolvency resolution process of bankrupt companies to providing financial support to fight arbitration suits or even helping firms find sector expert lawyers to battle costly disputes, a clutch of litigation funding startups is offering a range of services in the third-party funding market in India, the Economic Times reported. These include startups such as LegalPay, LitiCap, LegalFund and FightRight. Why it’s important:The litigation focused startups are helping companies fund costly legal disputes, focusing on sectors including infrastructure, real estate, logistics, media entertainment and manufacturing. The market for such services is expected to grow rapidly in the medium to long term. #10. Pay gap between CEOs and median employees widened in India Inc since pandemic The gap between the pay of CEOs and the median employee in corporate India has widened since the pandemic, according to an Economic Times study of 35 listed firms that are among the top in their respective sectors either by revenue or market share. These include companies like Hindustan Unilever, Indian Hotels, EIH, Infosys, Larsen & Toubro, Sun Pharma, Titan, Tata Steel, JSW Steel, Wipro, Dr Reddy’s Laboratories, Dabur, Voltas and Mphasis. Why it’s important:The widening gap is due to the higher proportion of variable pay and bonus and earnings linked to ESOPs, while median salary hikes for other staff have been modest, mostly in single to low double digits. | null | null | 2024-07-22 08:37 |
moneycontrol.com | https://www.moneycontrol.com/news/trends/weather/mc-daily-monsoon-tracker-rainfall-deficit-narrows-further-to-1-12774166.html | MC Daily Monsoon Tracker: Rainfall deficit narrows further to 1% | Rainfall deficit narrows further to 1 percent.Related stories. | India’s rainfall deficit narrowed further to lowest level of 1 percent as of July 21, as a number of states where the rain was deficient declined to 10 from 12, data released by the India Meteorological Department (IMD)shows. The number of states with normal monsoon rain rose back to 16, with 10 states getting excessive or "large excess" rainfall. Uneven distribution of rainfall has been a concern, as several places have reported record rain, sometimes a month's rainfall has poured in a day, causing damage to life and property. Unequal rain also poses a risk to agriculture, fuelling inflation worries. Northwest, east and northeast continue to face worse weather conditions. Chandigarh and Jharkhand continue to have a deficit of over 50 percent, with Himachal Pradesh, Punjab and neighbouring Haryana still 40 percent short of the normal rain. In monsoon parlance, a normal is calculated using a long-period average of 30 years for a specific region. Uneven rainfall distribution contributed to rise in reservoir deficit to 13 percent as of July 18 against 10 percent in the previous week, data released by Central Water Commission shows. Andhra Pradesh and Bihar continue to face over 60 percent deficit in capacity. The government is yet to release acreage data but paddy, pulses and oilseeds acereage, as of July 12, was over 20 percent higher from year-ago period. Area under paddy and pulses was 11.6 million hectares and 6.2 million hectares, whereas oilseeds covered 14 million hectares. Sowing under coarse cereals was down 7 percent. The government is hoping for a revival of agricultural sector, which recorded 1.4 percent growth in FY24 compared to 4.7 percent in the previous year and also lower than the 3.7 percent long-term average. | null | null | 2024-07-22 08:23 |
moneycontrol.com | https://www.moneycontrol.com/news/business/byjus-founder-faces-reckoning-as-startup-implodes-12774162.html | Byju's founder faces reckoning as startup implodes | Byju's founder faces reckoning as startup implodes.Related stories. | Byju Raveendran, an Indian mathematics whiz who soared from teacher to startup billionaire before his education-technology company imploded this year, now faces his biggest test. The future of Raveendran's eponymous Byju's online coaching firm rests with India's courts after the county's biggest startup, once loved by global investors who valued it at $22 billion, crashed below $2 billion in valuation. The 44-year-old founder last week lost control of the company as a tribunal kick-started an insolvency process. Accused of "financial mismanagement and compliance issues", the son of a family of teachers from a small village in south India faces a reckoning that will test the ingenuity that made him a poster child for India's startups. His formerly high-flying company was eventually brought low when it could not pay $19 million in sponsorship dues to India's cricket federation, prompting a tribunal to suspend Byju's board and make Raveendran report to a court-appointed restructuring expert. An appeals tribunal is expected to hold a hearing on Monday on whether Byju's insolvency process should be quashed after the former billionaire argued in court his company is solvent and that insolvency could shut it down and cost the jobs of 27,000 staff, including teachers. Insolvency also would not bode well for Byju's backers, such as Dutch technology investor Prosus. Raveendran denies the allegations of mismanagement and wrongdoing at his firm, which has in recent months faced lawsuits over unpaid loans and boardroom battles with foreign investors that went public. Potential insolvency is a dramatic turn of events for an entrepreneur described by one person who has worked with him as an extremely passionate and goal-oriented person who might adopt "an abrasive approach" in a crisis. Raveendran presented a "suave, nice and polished" image, appearing to heed advice, but "eventually there was a trust deficit", said another executive who quit last year as a Byju's senior vice president. "He said things are improving, don't worry, we have the money," the former executive said. Raveendran and a Byju's spokesperson did not respond to requests for comment. BYJU'S DOWNFALL: 'OUR FAIR SHARE OF MISTAKES' An engineer by training, he started Byju's in 2011 with physical classes after friends urged him to go into teaching. Raveendran, who aced a premier Indian management exam "with a score of 100 percentile, not once but twice", according to the company website, started what would become his empire with his wife Divya Gokulnath, 38, a former student of his. In education-obsessed India, Raveendran hit gold by offering online teaching programs priced from $100 to $300. He got a mammoth boost when the COVID-19 pandemic sent students indoors. At the height of his fame in 2021, he and his wife had a net worth of $4 billion, Forbes reckoned. Now all that is in tatters. Behind the reversal of Byju's meteoric success, say executives and advisers who worked with Raveendran, is that he overruled associates and expanded the business through expensive acquisitions, splurging on marketing and being slow to address problems such as sales agents adopting aggressive tactics to mis-sell courses that damaged the company's reputation. With the backing of investors like General Atlantic, Prosus and Facebook founder Mark Zuckerberg's philanthropy venture, Raveendran spent millions on acquisitions, and the company says it has 150 million students in over 100 countries. "While growing fast, as I've accepted multiple times, we've made our fair share of mistakes", Raveendran told an interviewer last year at the World Economic Forum in Davos. As he battled crises, the CEO also said decisions to lay off some of its then-50,000 employees and slash branding expenses would help strengthen loss-making Byju's and turn its cashflow positive. "Every country needs a Byju's," he said. | null | null | 2024-07-22 08:01 |
moneycontrol.com | https://www.moneycontrol.com/technology/auto/suzuki-sees-indias-automobile-market-growing-fivefold-by-2047-article-12774147.html | Suzuki sees India’s automobile market growing fivefold by 2047 | Suzuki sees India’s automobile market growing fivefold by 2047.Related stories. | India’s car market is on track to reach 20 million units by 2047, helped by promising growth in battery electric vehicles, Suzuki Motor Corp. Executive Vice President Kenichi Ayukawa said. First, the goal is for Maruti Suzuki India Ltd., the Japanese carmaker’s subsidiary, to grab 50% market share by 2030, from around 40% for the fiscal year through March. “We’re confident that the Indian market will expand in the mid to long term,” Ayukawa said in an interview. The emergence of India as an economic powerhouse and its expanding middle class present a clear opportunity for the Hamamatsu-based manufacturer, which has been active in the South Asian nation since 1983 and has found success as the top-selling automaker with models such as Swift and Brezza. In order to keep its lead, Suzuki plans to introduce its first-ever EV in India, as well as in Europe, next year after exhibiting its mass production model at the upcoming auto expo in India in January, according to Ayukawa. “We’ll develop products, invest and expand our network,” Ayukawa said. A total of 4.2 million passenger vehicles were sold in India in the fiscal year ended in March, according to the Society of Indian Automobile Manufacturers. To put that number — and Ayukawa’s prediction — in perspective, 3.1 million passenger cars were sold in the US last year, while Europe saw 15 million in unit sales. China is the world’s largest automobile market with 26 million passenger vehicle sales, according to the International Organization of Motor Vehicle Manufacturers. Although Suzuki’s planned eVX is a premium electric vehicle, the carmaker will also roll out more affordable and compact models with lighter batteries, according to Ayukawa. Suzuki is targeting 15% of its sales in India to be EVs by 2030, he added. “India faces environmental issues so I think EVs will grow to an extent,” Ayukawa said. Although people are paying more for cars more than they used to, “India remains a price-conscious market,” he added. Even so, car buyers are starting to show greater appetite for crossovers and sport-utility vehicles, according to Ayukawa. Competition is tougher in that segment because it’s a “strong area for Tata and Mahindra,” he said. Tata Motors Ltd., India’s third-biggest carmaker, has already taken the lead in with fully-electric variants of its popular Tiago and Nexon models, and expects its EV business to reach profitability by early 2026. Suzuki will focus on models that can be used for everyday needs, which will require development of new types of batteries, according to Ayukawa. In the future, Suzuki may embark on domestic production of cells in the next 5 to 10 years, he added. As for collaboration in India with Toyota Motor Corp., which forged a strategic partnership with Suzuki in 2019 through a stake of about 5%, Suzuki will likely focus on smaller cars while Toyota will take the lead on bigger models, Ayukawa said. Toyota’s EV technology will also bolster Suzuki’s product development, he added. “We will learn basic know-how from Toyota and gradually make it our own,” Ayukawa said. Suzuki also sees potential in cars powered by compressed natural gas, which is cheaper than gasoline in India, according to Ayukawa. Maruti Suzuki sold 483,000 CNG cars in the latest fiscal period, up 47% from a year earlier. Although Suzuki plans to start operating four plants that convert methane from cow manure into fuel for cars that currently run on CNG, there are challenges ahead, such as monetizing the organic fertilizer that remains after manufacturing the fuel at a large scale, Ayukawa said. | null | null | 2024-07-22 07:29 |
moneycontrol.com | https://www.moneycontrol.com/news/business/economy/economic-survey-to-be-presented-on-monday-a-day-before-budget-check-timings-other-details-12774057.html | Economic Survey to be presented on Monday, a day before Budget; check timings, other details | Union Finance Minister Nirmala Sitharaman.Related stories. | The Union government is set to table the Economic Survey on Monday as the wait for the full Budget for 2024-25. Union Finance Minister Nirmala Sitharaman will table the pre-budget document in Parliament, a day ahead of the Budget presentation. The Economic Survey 2023-24 will be presented in Lok Sabha at 1 pm and in Rajya Sabha at 2 pm. The press conference will take place 02.30 pm at NMC The Economic Survey document, prepared by the Economic Division of the Department of Economic Affairs in the Ministry of Finance and formulated under the supervision of the chief economic adviser, will give insights into the state of the economy and various indicators of 2023-24 (April-March) and some outlook for the current year. The Economy Survey document may also give some idea about the tone and texture of theBudgetfor 2024-25, to be presented on Tuesday. Watch Chief Economic Adviser to the Government of India, Dr. V. Anantha Nageswaran’s Press Conference on Economic Survey 2023-24 TOMORROW ⏰ 02.30 pm ️ 22nd July 2024 National Media Centre Stay tuned and watch out for LIVE updates on X ️https://t.co/76gY97bgKj…pic.twitter.com/tUgsRIt9cs — Ministry of Finance (@FinMinIndia)July 21, 2024 Typically, along with the sectoral chapters, the Survey document also adds new need-based chapters that need focus. All eyes will be on the major announcements made by the finance minister and the government's forward-looking guidance about the overall economy. With this upcoming budget presentation, Finance Minister Nirmala Sitharaman will surpass the record set by former Prime Minister Morarji Desai, who presented five annual budgets and one interim budget between 1959 and 1964 as finance minister. Sitharaman's upcoming budget speech will be her seventh. Sitharaman has surpassed Manmohan Singh, Arun Jaitley, P. Chidambaram, and Yashwant Sinha, who each presented five budgets. *With Agency Inputs | null | null | 2024-07-21 20:31 |
moneycontrol.com | https://www.moneycontrol.com/news/business/companies/vedanta-wins-bids-for-nickel-chromium-and-pge-blocks-in-karnataka-and-bihar-12773896.html | Vedanta wins bids for Nickel, Chromium, and PGE blocks in Karnataka and Bihar | The company secured these blocks with the highest final price offers of 15.00 percent and 6.05 percent, respectively.. | Vedanta has been declared the 'Preferred Bidder' for two significant mining blocks: the Gollarahatti-Mallenahalli Nickel Chromium and PGE Block, and the Genjana Nickel, Chromium, and PGE Block. The company secured these blocks with the highest final price offers of 15.00 percent and 6.05 percent, respectively, it said in a press statement on July 21. The Gollarahatti-Mallenahalli Block, located in Karnataka, covers an area of 1238.122 hectares and is at the G4 level of exploration. The Genjana Block, situated in Bihar, spans 788.85 hectares and is at the G3 level of exploration. The Ministry of Mines, Government of India, had invited tenders for these blocks as part of Tranche II and Tranche III auctions, announced on February 29, 2024, and March 14, 2024. Vedanta participated in the live E-auction and emerged as the preferred bidder for both blocks. | null | null | 2024-07-21 11:29 |
moneycontrol.com | https://www.moneycontrol.com/news/trends/weather/mc-daily-monsoon-tracker-rainfall-deficit-narrows-to-lowest-level-in-10-days-12773864.html | MC Daily Monsoon Tracker: Rainfall deficit narrows to lowest level in 10 days | Rainfall deficit narrows.Related stories. | India’s rainfall deficit narrowed to lowest level of 1.4 percent as of July 20, even as eastern and north-western states in the country fell further into deficit, according to data released by the Indian Meteorological Department. The number of states with deficient rainfall was 11 on July 20, with another seven facing excess rainfall and three experiencing large excess rainfall. Chandigarh continues to experience over 50 percent deficit, with Himachal Pradesh, Punjab, Haryana and Jharkhand experiencing over 30 percent deficit. In monsoon parlance, a normal is calculated using a long-period average of 30 years for a specific region. Uneven rainfall distribution contributed to rise in reservoir deficit to 13 percent compared as of July 18 with 10 percent compared to the previous week, according to data released by Central Water Commission.Andhra Pradesh and Bihar continue to face over 60 percent deficit in capacity. The government is yet to release acreage data. But paddy, pulses and oilseeds experienced over 20 percent higher acreage from similar period in the previous year, as of July 12. Area sown under paddy and pulses was 11.6 million hectares and 6.2 million hectares, whereas oilseeds covered 14 million hectares.Sowing under coarse cereals was down 7 percent during this period. The government is hoping for a revival of its agricultural sector, which recorded 1.4 percent growth in FY24 compared to 4.7 percent in the previous year, also lower than the 3.7 percent long-term average. | null | null | 2024-07-21 10:51 |
moneycontrol.com | https://www.moneycontrol.com/news/business/companies/air-india-issues-apology-to-passengers-of-delhi-san-francisco-flight-offers-full-fare-refund-12773665.html | Air India issues apology to passengers of Delhi-San Francisco flight, offers full fare refund | The airline had to divert its Delhi-San Francisco flight with 225 passengers and 19 crew members to the Russian city on Thursday after the cockpit crew detected a potential issue in the cargo hold area of the Boeing 777 aircraft.Related stories. | Air India on Saturday issued an apology for the passengers of Delhi-San Francisco flight passengers, who were stranded at the Krasnoyarsk International Airport (KJA) in Russia after the cockpit crew detected a potential issue in the cargo hold area of the Boeing 777 aircraft. In a note issued by a senior official of the airline, it said," Please accept our sincere apologies for the inconvenience that you have undergone enroute your journey to San Francisco. We completely understand that the past 24 hours were difficult and thank you for your patience during this period. Your safety was our prime consideration throughout and governed our pilots' decision to make a precautionary landing at Krasnoyarsk International Airport [KJA], Russia." "It was a difficult, yet important decision for us to land at an airport outside our network. We are thankful for the support extended to us by the local authorities, the Indian consulate in Moscow and our extended partners at the airport," the statement further added."While we cannot obliterate the experience that you have undergone, as a gesture to convey our sincere regrets, we will fully refund the fare for your journey and will incrementally provide you a voucher for future travel on Air India, the airline announced Earlier, the airline had to divert its Delhi-San Francisco flight with 225 passengers and 19 crew members to the Russian city on Thursday"Our ferry flight AI1179 from Mumbai (BOM) to Krasnoyarsk, Russia (KJA) is now airborne, and is expected to arrive at KJA at 2000 hours (local time) on 19 July," Air India said in a post on X. It also said that an Air India team, including crew and security personnel, are onboard the ferry flight to provide any support that the passengers and staff at the Russian airport may require. The ferry flight is carrying essentials in addition to sufficient food for all passengers. The aircraft will ferry all passengers and crew out of KJA at the earliest, it said. After the flight made a precautionary landing at KJA, Air India said its local support was activated to assist passengers, who were required by authorities to remain in the terminal building in the absence of Russian visas. | null | null | 2024-07-20 17:57 |
moneycontrol.com | https://www.moneycontrol.com/news/business/markets/moneycontrol-pro-weekender-high-hopes-12773317.html | Moneycontrol Pro Weekender | High Hopes | -.Related stories. | Dear Reader, Most commentary on theUnion Budgetto be unveiled on Tuesday has been to the effect that it should strike a balance between fiscal consolidation, capex and a push to consumption. The tax buoyancy and the mega RBI dividend are expected to give the government enough leeway to do all three. But that begs the question: why should the government be so diffident? For Prime Minister Narendra Modi, the next five years will probably decide what legacy he wishes to leave behind. He has already articulated that vision, not just in his Viksit Bharat and Amrit Kaal slogans, not just in the economic reforms that have been done in his last two terms as prime minister, but also through pronouncements of further reforms promised in various budgets. ItŌĆÖs time to walk that talk. With the world turning away from China, this is the time for India to seize the moment. This is not a time for balance, itŌĆÖs a time to be bold. ItŌĆÖs a time for dreaming big, of charging ahead with the enormous task of transforming India from a land of peasants and petty producers to a modern competitive capitalist economy. The first Budget in ModiŌĆÖs third term provides an ideal platform not just to outline the governmentŌĆÖs plan for achieving that objective, but also to put a timeline to it. So far, Finance Minister Nirmala SitharamanŌĆÖs Budgets have never been populist.Her 2021 Budget┬Āwas a dream one, with promises of privatisation, higher capex, higher foreign direct investment, a bad bank, production-linked incentives for creating global manufacturing champions, monetisation of government land, ports, airports, roads, pipelines and closure of sick public sector units. It also set new standards of transparency by bringing off-budget spending into the budget estimates. About her 2022 Budget, we wrote that ŌĆ£the good thing about the Budget is its conservatismŌĆÖŌĆÖ. It reduced the subsidies that had bloated up during the pandemic and we wrote that the government didnŌĆÖt buy the argument that consumption needs to be supported further. We also commended her for resisting the siren songs of populism before the state elections. Onher 2023 Budget┬Āwe wrote that with its emphasis on roads, railways and other infrastructure spending and its slashing of subsidies and some social sector schemes, the Budget gave out a clear message about the priorities of the government, priorities in tune with what the markets and businesses like to hear. We said it reinforced our faith in the conservative credentials of the government. Andin this yearŌĆÖs interim Budget, we said, ŌĆ£The message being sent out: this is a credible government, a votary of sound moneyŌĆØ. In her Budget speech, Sitharaman said, ŌĆ£We believe in empowering the poor. The earlier approach of tackling poverty through entitlements had resulted in very modest outcomes.ŌĆØ Simply put, that implies equipping the masses to take advantage of the growth opportunities, rather than rely on handouts. In short, there is no need for the government to blot its copybook by going in for populism now. In fact, contrary to perceptions, thecentral government hasnŌĆÖt really neglected the social sectors. WhatŌĆÖs more, state governments facing elections, such as in Maharashtra, aregiving away ŌĆ£revadisŌĆØ with a vengeance, thereŌĆÖs no need for the central government to jump on to that reckless bandwagon. In any case, demand is firming up, if the RBIŌĆÖs research is anything to go by. Their latest State of the Economy report, published this week, says the second quarter of 2024-25 has begun with signs of quickening momentum in the economy, adding that the improvement in the outlook for agriculture and the revival of rural spending have turned out to be the bright spots in the evolution of demand conditions. ThereŌĆÖs no need for the Budget to push demand then. The approach the Budget should take was already spelt out in the 2023 Economic Survey, which told us: ŌĆ£Fiscal discipline translates into a fiscal stimulus for all sections of the economy through lower interest rates. As governments make their fiscal situations sustainable and stick to that path, the risk premium embedded in their interest rates comes down, thus lowering the cost of capital for all sections of society ŌĆō on their educational loans, housing loans, car loans and business loans ŌĆō and putting more money in their hands.ŌĆÖŌĆÖ The Survey also said that if asset monetisation revenues are used to reduce public sector debt, the sovereign credit rating will improve, leading to a lower cost of capital.That, it said, ŌĆ£will be the biggest fiscal stimulus to the economyŌĆØ.┬ĀThereŌĆÖs little to add to that excellent prescription. Next weekŌĆÖs Budget should, therefore, prune the fiscal deficit, double down on reforms, and create the conditions for the private sector to flourish. And if the government can find a way to keep more money in peopleŌĆÖs hands by reducing taxes, that would be even better. That said, as always, we offered a wide variety of views on what the finance minister should do. My colleagueNeha Dave, for instance, wrote┬Āthat ŌĆ£the government is likely to don the hat of both a ŌĆśfiscal hawkŌĆÖ, by fast-pacing fiscal consolidation, and a ŌĆśgrowth-driving doveŌĆÖ through higher revenue spendingŌĆØ.This article┬Āsaid the FM is likely to stick to the capital expenditure target set in the interim Budget.Dipti Deshpande, principal economist at CRISIL, said rural India needed policy support to become resilient.This story┬Ādebated the pros and cons of a consumption boost, whilethis one wondered┬Āwhether the FM would do something for reforms in the Insolvency and Bankruptcy Code. We wrote about what the Budget could do forinfrastructure, for empowering theEV ecosystem, and for the development ofthe bond market. We looked atthe long view of IndiaŌĆÖs central government Budgets, the widely expectedMake-in-India push┬Āand, on a related note, whether the Budget will aidIndiaŌĆÖs attempt to be part of global value chains. On the likely market reaction to the Budget and the possible opportunities for investors, we looked at thepotential market movers, whether traders should be worried abouta raise in the securities transaction tax, onkeeping your trading playbook budget-proof, andwhat in the budget could excite the markets further. To be sure, the markets have set a high bar for the Budget. This may be the right time for the oldPink Floyd number, ŌĆśHigh HopesŌĆÖ, which contained these memorable lines: ŌĆ£At a higher altitude with flag unfurledWe reached the dizzy heights of that dreamed of world.ŌĆØ Cheers, Manas Chakravarty Stocks Why should you look atthis cement stock ahead of Union Budget 2024?Tata Technologies, ┬ĀInfosys,Sanstar IPO,Havells India,Asian Paints,LTI Mindtree,HCL Tech,Coal India┬Ārevises e-auction norms: Is there more upside to the stock now?D-Mart,HAL,HDFC Life,Bajaj Auto,Himadri Speciality Markets Global fund manager survey: the shape of things to come SEBI fills the vacuum by creatinga much-needed asset class How Indore has become thehub of unregistered investment advisors We look to invest in companies that may become part of the index in 2030:Kenneth Andrade Indian bonds to attract long-term passive global flows┬Āamid staggered RBI rate cuts from Q3 Four things to remember wheninvesting in a thematic fund Companies and sectors Investors of TCS, HCL┬Āshould tally their optimism with ISG index Hero MotoCorp HDFC Life The post-COVID bump up inIndian RailwaysŌĆÖ revenues Asian Paints Tata Power As IT slumps,can Indian pharma pick up the slack? IndiaŌĆÖs growing LAP market┬Āunderscores need for easy capital to small businesses Financial Times Big tech shares lose lustre┬Āas US market rocked by violent rotation Investors grapple with theTrump trade Chip sector is caught in thebattle of AI versus geopolitics Investors should focus less on rates, more on the money flows Can Xi Jinping keep a lid onChinaŌĆÖs mounting social strains? Economy & Policy The $230 million crypto theft at WazirX is a wake-up call┬Āfor Indian regulators, government ItŌĆÖs time tostop kicking the BSNL-MTNL can┬Ādown the road Monsoon Watch Indian banks may have anagri loan problem┬Āahead ProEconomic Tracker Tech & Startups Will thehype and hoopla over AI spending┬Āfinally pay off? Discretionary spending has not picked up, says HCL Tech CEO C Vijayakumar Geopolitics & Geoeconomics Willthe Russia factor┬Āmar IndiaŌĆÖs acquisition of key US military technologies? Will theThird Plenum┬Āturn things around for China? The Eastern Window:NATO seeks to expand┬Āits ambit to contain China, fully isolate Russia | null | null | 2024-07-20 10:01 |
moneycontrol.com | https://www.moneycontrol.com/news/business/economy/fiscal-deficit-go-easy-or-pull-back-what-markets-are-likely-to-reward-12773476.html | Fiscal Deficit: Go easy or pull back? What markets are likely to reward | Union Budget.Related stories. | By Nilesh Shah, Managing Director at Kotak Mahindra AMC The Union Budget 2024-25 will be presented by Finance Minister Nirmala Sitharaman on July 23. The fiscal deficit is avidly observed during the Union Budget presentation as it may impact various factors including the country’s rating. Also, the S&P has guided that a 7 percent or below combined (central + state governments) fiscal deficit could lead to a sovereign rating upgrade. The Government of India (GOI) has been able to walk the path of fiscal prudence and trim fiscal deficit from 9.3 percent in FY21 to 5.1 percent for FY25 (as per vote on account). The government fiscal policy has been non-inflationary so far at the same time the push for capex has been much appreciated by the markets. On one hand the government is keeping the fiscal deficit under control, on the other hand the RBI has done a commendable job in lowering inflation and maintaining robust growth. The effect of the same has been observed in both short term and long-term rates. Over the last 2 years, where the US has raised rates by 525 bps, India raised only by 250 bps. Long-term rates are up by 250 bps in the US and 25 bps in India. Globally, the broad themes are dollar weakness and dollar assets de-rating over the next 10 years. Hence, global investors are looking for economies with a superior macro front. Click Here To ReadAll Budget Expectations The Indian equity market is the best performing in the emerging markets and is among the top 10 largest (by market cap) in the world. Additionally, GOI and the Indian economy are going to reap the benefits of Govt bonds being included in global indices. Since the announcement of the inclusion of Indian government bonds in the JP Morgan GBI-EM, Indian Government Bonds has seen net inflows of Rs 90,000 crore till June 2024. This clearly shows that global investors are looking to increase their allocation to the Indian market. India’s rating upgrade if achieved in the years ahead could bring in substantial incremental flows leading to reduced borrowing cost which can help government spend more money to boost the economy. Hence, the government should continue the good work carried out over the last year and follow the fiscal roadmap plan. Also read:ÂBoosting Agricultural Exports: Budgeting for infrastructure, high-value crops, and ag-tech The government's first major action after its third term was to aid with the construction of an additional three crore rural and urban houses under the Pradhan Mantri Awas Yojana (PMAY). The scheme appears populist, however, the bulk of the expenditure would be capital in nature. GOI can focus on such additional populist schemes which end up achieving the dual objective of boosting non-inflationary growth and are perceived to be populist. GOI has been slow on disinvestment over the last few years. With the rally in the Indian stock market, the PSU market cap has seen a sharp recovery hence, GOI may consider liquidating its stake where the market float is low. Disinvestment will help the government to manage the revenues prudently without compromising on the fiscal roadmap of 4.5 percent or lower in FY26. Also read:ÂBudget Snapshot | A long view of India’s central government budgets The GOI received Rs 2.11 lakh crore in the form of dividends from the Reserve Bank of India for FY24 which is Rs 1 lakh crore more than what the government had budgeted. This puts the government in a robust situation to manage fiscal deficit by 30 bps on account of the RBI dividend. However, they have some room to increase the tax slab to benefit the middle-class tax payer and keep the major eye on the capex and keep walking the path of fiscal prudence. Also, the government’s strong tax collection and tax buoyancy can provide incremental support to capex supporting the GDP growth in a non-inflationary manner. Given the backdrop, the Indian markets and the investors have reaped significant benefits from the fiscal policy adopted by the GOI over the course of the decade. The continuity on the same front will be rewarded by all asset classes over the medium to long term. Let’s go ahead and seize the moment. | null | null | 2024-07-20 08:58 |
moneycontrol.com | https://www.moneycontrol.com/news/trends/expert-columns/union-budget-govt-to-strike-a-balance-between-fiscal-deficit-capex-for-growth-social-spending-12773478.html | Union Budget: Govt to strike a balance between fiscal deficit, capex for growth, social spending | Union Budget.Related stories. | By Krishna Rao, Managing Director & Co-Head - Equity Broking at JM Financial Services The upcoming Union Budget is expected to lay a strong foundation for India’s economic, infrastructure, and social development for the next decade, with strong reform measures and a visionary blueprint for growth. With the focus on adding further impetus and consolidating the ‘India growth story’, it is expected that the pace of reforms would be greatly expedited to accelerate progress. In addition, expectations would be high as this would be the first full-year budget for NDA 3.0. We believe that the government would strike a balance between Fiscal Deficit, Capex for growth and Social spending. The continuation of the existing Capex agenda (Infrastructure, Railways, Defence, Renewable/Clean energy), higher budgetary allocation to revive the rural economy, job creation and a firm roadmap for 'Viksit Bharat' by 2047 would be the key theme for the Union Budget 2024-25. Markets would also keenly await any adverse changes in the capital gains tax on equities. In case there is no change in capital gains tax it would be considered positive for the Indian equity markets. Fiscal Consolidation The government would adopt a path to fiscal consolidation to balance macroeconomic growth with stability. The government would attempt to maintain the fiscal deficit for FY25 below 5.1 percent, with a target of achieving 4.5 percent by FY26, as forecasted. Also read:ÂIndia Budget 2024: Capital gain tax regime is too cluttered. It needs an overhaul Emphasis on CAPEX spending: Capex will remain at the forefront while balancing Fiscal deficit. The Government is likely to continue its capex plan of Rs 11.1 lakh crore for FY25, as announced in the Interim budget, to keep Fiscal Deficit target unchanged at 5.1 percent of GDP (versus 5.8 percent of GDP in FY24) to reach 4.5 percent of GDP in FY26E. The Government’s capex focus would continue to remain on defence, railways and infrastructure development given the Government’s vision of 'Viksit Bharat' by 2047. The continuity of pro-reform agenda like PLI schemes and incentivizing clean energy (RE, Green Hydrogen) would aid revival in private Capex as well as job creation. Click Here To ReadAll Budget Expectations Reinforce Measures to Revive Rural Economy The record dividend of Rs 2.11 lakh crore received by the government from RBI, would provide headroom to invest in welfare measures to revive rural economy, with higher spending on government programmes like the Pradhan Mantri Awas Yojana (affordable housing for all) and the PM Kisan Samman Nidhi Yojana (financial support for farmers). Likely government welfare schemes and recent moderation in inflation, bodes well for recovery in the rural economy and this could also help boost demand across the broader economy. Key Budget Picks: When it comes to our key picks for this Budget, we are positive about companies that would benefit from Capex revival and Rural demand recovery. Rural revival theme: Mahindra & Mahindra, Hero Motocorp, ITC, Sumitomo ChemicalPower capex/green energy: RIL, Power Grid, NTPC, Sanghvi MoversDefence capex: Bharat Electronics, Bharat ForgeWater treatment play: VA Tech WabagCapital goods: Larsen & ToubroReal estate & building material: DLF, Ambuja Cement, APL ApolloPower finance: Power Finance Corporation (PFC)Railways: IRCON International | null | null | 2024-07-20 08:49 |
moneycontrol.com | https://www.moneycontrol.com/news/business/companies/tariff-hikes-will-strengthen-the-telecom-sector-in-the-long-term-jio-platforms-anshuman-thakur-12773454.html | Tariff hikes will strengthen the telecom sector in the long term: Jio Platform's Anshuman Thakur | Jio’s 5G services is free to users who subscribe to certain plans at no additional cost, aimed to encourage 5G consumption on the network and people to adopt more 5G, the official added.Related stories. | The recent round of telecom tariff hikes will strengthen the Indian telecom sector in the longer term but may result in some transient impact on consumer behaviour, Jio Platforms’ Senior Vice President Anshuman Thakur said in the post-earning presentation on July 19. Jio recently announced its new unlimited plans effective July 3, 2024. These new plans imply a tariff increase of 13 -25 percent compared to previous plans. “As expected, other operators have also raised tariffs. Overall, industry tariff levels have gone up. There may be some transient impact, but in longer terms, this is going to be good for the overall telecom industry and help build a premier digital society and strengthen the sector,” Thakur said. ALSO READ:ÂJio Platforms Q1 profit increases 12% to Rs 5,698 crore Jio’s 5G services is free to users who subscribe to certain plans at no additional cost. “This is to encourage 5G consumption on the network and people to adopt more 5G,” he said. The senior executive said Jio has a “very good spectrum” bank that fulfils requirements across Jio's services, including 4G, 5G mobile, and home broadband. “We were very focused on acquiring more spectrum only in cases where we had seen demand go up, the data consumption going up and therefore, to ensure that the customer service never suffers, we added more spectrum in Bihar and West Bengal in 1800 MHz band at total costs of Rs 974 crore. So we were very focused on looking at spectrum, which we needed just to ensure that our customers always get the best offering, he said. Jio’s spectrum footprint across bands is now at 26,801 MHz. He said Jio is the only telco running 5G across the low band [700 Mhz], mid-band [3300 Mhz and high-band [26 Ghz]. “This gives us unique advantages like carrier aggregation and standalone network.” Thakur said that Jio has been making inroads in key verticals in the enterprise space and has started displacing competition. “We are now successfully displacing competition wherever we are getting an opportunity. Enterprise deals tend to have longer tenure. So we have to wait for opportunities where these come up for renewal and then make our entry,” he said, adding that Jio has expanded its wallet share beyond connectivity. Jio is also building a partner ecosystem to tap into enterprise opportunities, especially in specialised sectors where access through the partner ecosystem is easier and faster. He revealed that BFSI remains a strong vertical for Jio's enterprise business. "We have tied up with some BFSI clients to do more beyond connectivity and some enterprise offering.” Disclosure: Moneycontrol is a part of the Network18 group. Network18 is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary. | null | null | 2024-07-19 21:51 |
moneycontrol.com | https://www.moneycontrol.com/news/business/economy/i-t-portal-remains-insulated-against-impact-of-microsoft-outage-12773425.html | I-T portal remains insulated against impact of Microsoft outage | The deadline for filing income tax returns (ITR) for 2024 is July 31..Related stories. | The income tax department portal did not face any major disruptions and worked fine despite the Microsoft global outage, the department and chartered accountants said. “Don't think there are any issues at present,” Central Board of Direct Taxes (CBDT) said late in the evening on July 19. One of the world's major global system outages disrupted airline operations, stock markets activities, some media broadcast operations, and payment gateways across time zones, on July 19. “Today @IncomeTaxIndia portal response was good, 26AS AIS/TIS download was also pretty good,” a chartered accountant said.Today@IncomeTaxIndiaportal response was good, 26AS AIS/TIS download was also pretty good — Basu-CA & RV (@Basappamv)July 18, 2024 “Uploaded & e-verified mine and my family's Income Tax Return today. Have you filed your ITRs?” a practicing chartered accountant Chirag Chauhan said. Uploaded & Everified my & family's Income Tax Return today Have you filed your ITRs? — CA Chirag Chauhan (@CAChirag)July 19, 2024 The deadline for filing income tax returns (ITR) for 2024 is July 31. A few days ago, the income tax portal reportedly faced technical glitches. Some chartered accountant associations also contacted the department with complaints of the same. India's IT Minister Ashwini Vaishnaw posted on social media platform X that the ministry is in touch with Microsoft - at the centre of the disruption - regarding the global outage, and that the government's servers under NIC have not been affected. A technical advisory was also issued by the government's cyber agency CERT-In (Computer Emergency Response Team). Microsoft has said that the underlying cause behind the disruption in the Azure cloud service has been fixed, adding the issue with the Windows 365 personal computers was caused by a recent update to the CrowdStrike software. The problem may be arising from an outage at American cyber security company Crowdstrike. CrowdStrike Holdings' chief executive officer too has posted on social media platform X stating that the company has identified the update that led to a worldwide crash in the Windows systems and that 'a fix has been deployed'. Meanwhile, the CBDT on July 19 said it has awarded the Taxnet 2.0 project to Bharti-Airtel for providing network connectivity, facility management services and video conferencing services to the Income Tax Department. Bharti-Airtel was selected for this critical project through an open tender selection process. Taxnet 2.0 includes enhanced security by utilising state-of-the-art technology to protect sensitive data and ensure privacy, higher reliability by delivering consistent and dependable service to departmental users across the country. It also offers seamless connectivity by ensuring smooth and uninterrupted access to departmental users, thereby enhancing tax services for citizens and businesses. “This is a state-of-the-art technology, providing secure, reliable and seamless connectivity services and marks a significant advancement over the current Taxnet 1.0 project. It will go a long way in enhancing the digital infrastructure of the Department,” the Finance Ministry said in a statement. | null | null | 2024-07-19 20:53 |
moneycontrol.com | https://www.moneycontrol.com/news/business/economy/mospi-reconstitutes-committee-to-advise-on-price-index-revisions-12773418.html | MOSPI reconstitutes committee to advise on price index revisions | The revamped committee will advise the ministry on creation of new indices on consumer prices, wholesale prices and producer price index, which will help determine consumer inflation and wholesale inflation.Related stories. | In a bid to revise the inflation indicators in the country, the Ministry of Statistics and Programme Implementation (MOSPI) has announced the reconstitution of the technical advisory committee, or TAC, on statistics of prices and cost of living. The revamped committee will advise the ministry on creation of new indices on consumer prices, wholesale prices and producer price index, which will help determine consumer inflation and wholesale inflation. At present, the base year and basket of goods considered by India is over a decade old, with both following 2012 as the base year. The government had in June released the full results of the Household Consumption Expenditure Survey 2022-23, which will determine the basket of goods for new consumer price index series. The ministry is conducting two back-to-back surveys to verify the results, as it had to junk the 2017-18 results citing data inconsistencies. The formation of committee on prices follows the announcement of the government to reconstituteAdvisory Committee on National Accounts Statistics, which will help revise the GDP calculations. The government plans to align the base year for GDP, CPI, WPI and other statistics. Earlier,Moneycontrolhad reported that thenew GDP baseis likely to be operational from 2026. For CPI, the government is considering 2024 as the base year. In January, the government had started market survey, which helps determine shops from where the government will collect prices monthly. The CPI and WPI statistics are released every month, while GDP data is released quarterly. The new TAC is headed by Director General of Statistics as chairperson along with 21 other members. It counts representatives of Niti Aayog, labour and commerce ministry, along with a few state directors as members. The committee also has representation from academia. | null | null | 2024-07-19 20:44 |
moneycontrol.com | https://www.moneycontrol.com/news/business/economy/fruits-and-vegetables-processed-cereal-exports-jumps-9-in-first-quarter-of-fiscal-12773334.html | Fruits and vegetables, processed cereal exports jump 9% in Q1FY25 | India's fruit trade rises.Related stories. | Exports of fruits and vegetables and cereal preparations and miscellaneous product items increased 9 percent in the first quarter of FY25, as per data released by Agricultural and Processed Food Products Export Development Authority (APEDA) on July 19. While the over agricultural trade declined by 3 percent, owing to restrictions on rice and decline in cashew and oil meals products, trade in non-regulated categories was 3 percent higher, Abhishek Dev, chairman, APEDA said. In the first two months of the year, dairy products were up 30 percent, whereas an increase in global cocoa prices pushed the trade up by 50 percent. On the other hand, non-basmati rice trade, the exports of which have been banned, was down 13 percent, and maize exports had dropped 75 percent compared with the previous year. Maize exports were down, as prices of domestic market are higher than the international market and there is good production across the globe. APEDA has been trying to corner a larger share of the global market with focus on 25 products. On these focus products, trade was up 14.4 percent from last year, as they accounted for $14.4 billion of exports. “The idea is to take exports up further and capture a significant share of the $400 billion market in these products,” said Rajesh Agrawal, additional secretary, department of commerce. Dev noted that the organization has already started working on this goal and plans to double farmer producers organisations (FPOs) to 2,500 within a year from 1,200 at present. The organisation also plans to increase exports on government’s digital commerce platform ONDC to 250, from 13. “We are also focusing on North Eastern Region and areas like Odisha to increase trade,” Dev noted. | null | null | 2024-07-19 20:20 |
moneycontrol.com | https://www.moneycontrol.com/news/business/economy/economic-survey-preview-watch-for-gdp-growth-food-inflation-forecast-and-climate-strategies-12773227.html | Economic Survey preview: Watch for GDP growth forecast, comments on food inflation, climate strategies | The country's average real GDP growth has been more than 7 percent over the last three years..Related stories. | TheEconomic Surveywill be presented on July 22, a day ahead of the full Budget for 2024-25. The survey will outline the key economic metrics of the country, most notably the forecast for real GDP growth for the ongoing financial year. Moneycontrol lists key things to watch out for in the series of documents that are prepared under the supervision of India's chief economic advisor V Anantha Nageswaran. GDP growth forecast The keenly awaited number in the Economic Survey is theGDP growth forecastfor the ongoing financial year. In the last full survey presented on January 31, 2023, GDP growth was seen in the range of 6-6.8 percent for FY24. This was much lower than the statistics ministry’s latest estimate that sees GDP growth at 8.2 percent in FY24. On January 29, two days before the interimBudgetfor 2024-25 was presented by Finance Minister Nirmala Sitharaman on February 1, the finance ministry came out with a report which estimated a GDP growth rate of close to 7 percent for the ongoing fiscal year. India's central bank expects the Indian economy to grow at 7.2 percent in FY25. The country's average real GDP growth has been more than 7 percent over the last three years. On rating agencies The Economic Survey's take on ratings agencies will be crucial given that past surveys have been critical of them claiming that their methodology failed to capture India's strong economic fundamentals. Now, given that rating agency S&P Global Ratings in May upgraded India’s sovereign rating outlook to positive from stable, citing robust growth and improved quality of government expenditure, one can expect the survey to weigh in on this development. On inflation The survey usually comments on inflation especially its trajectory so far and ahead in the context of the central bank's forecast for the same in a given financial year. The Reserve Bank of India (RBI) expects retail inflation at 4.5 percent in FY25, above the targeted 4 percent. This time around, one would look out for comments specifically on food inflation as it has stayed over 8 percent for the eighth consecutive month in June. Even headline retail inflation in June rose to a four-month high of 5.08 percent. On agriculture The health of the farm sector is critical for the economic and social well-being of the country. India has achieved domestic food security and has become a net exporter of farm output to the world. The potential is, however, larger. The Economic Survey is expected to give details on agricultural productivity, which will hold importance for FY25 as the sector's gross value added (GVA) growth in FY24 was at a multi-year low of 1.4 percent, a decrease from 4.7 percent in FY23. On July 17, the Asian Development Bank (ADB) maintained its GDP growth forecast for India at 7 percent for the current financial year, attributing this to an anticipated rebound in agriculture due to projections of the above-normal monsoon. "After muted growth in FY23, a rebound in agriculture is expected given the above-normal monsoon projections. This is notwithstanding the slower advance of the monsoon in June. A rebound in agriculture will be important to sustain growth momentum in rural areas," the ADB stated. On climate and energy security Climate change and the environment are not only hot-button issues globally but are critical to India realising its aspirations. Hence, India currently spearheads one of the most robust climate actions through its Nationally Determined Contributions (NDC), which includes an ambitious programme for transitions to clean energy in the world. Despite the adverse impacts of Covid-19 on the economy, the country has enhanced its climate ambition manifold. A major issue towards addressing the global challenge is mobilising timely and adequate climate finance through multilateral development banks. The Economic Survey is expected to highlight the twenty-first-century challenge of climate change and energy transition. In general, climate across the world has become increasingly erratic, further fortifying upside risks to food prices. According to a new International Energy Agency report, growth in battery technology outpaced nearly all other clean energy technologies in 2023. This surge was driven by falling costs, advancing innovation, and supportive industrial policies, significantly increasing demand. Batteries are poised to be crucial in meeting the climate and energy targets, it said. The National Hydrogen Mission and Green Hydrogen Policy have been introduced to make India energy independent by 2047. | null | null | 2024-07-19 19:11 |
moneycontrol.com | https://www.moneycontrol.com/news/business/markets/ultratechs-23-stake-in-india-cements-seen-as-promising-market-investment-cfo-atul-daga-12773335.html | UltraTech's 23% stake in India Cements seen as promising market investment: CFO Atul Daga | UltraTech has now become the second-largest shareholder, after reportedly purchasing the entire stake of serial investor Radhakishnan Damani and his associates..Related stories. | Picking up a large stake in India Cements is purely a non-controlling financial investment, said Ultratech Cement management on July 19. Last month,UltraTechsnapped up a big chunk ofIndia Cementsby acquiring a 23 percent non-controlling stake in the struggling rival for around Rs 1,900 crore via block deals. Initially, UltraTech bought 6.02 crore ICL shares, or a 19.4 percent stake. Following this, the board met again and approved the acquisition of an additional 3.4 percent, or 1.04 crore equity shares, for up to Rs 285 apiece. "We found this as a good opportunity to buy in and the way markets are, this should prove to be a good investment," saidUltratech CementCFO Atul Daga in a post-earnings conference call. This follows market speculation about UltraTech potentially acquiring India Cements following its substantial stake purchase. Also Read |ÂPrice hikes possible after monsoon in second half of 2024: Ultratech Cement UltraTech has now become the second-largest shareholder, after reportedly purchasing the entire stake of serial investor Radhakishnan Damani and his associates. It is worth mentioning that Southern India has been the scene of frantic mergers and acquisitions activity over the past few quarters, as more national players emerge in a traditionally fragmented and localised market. Adani Cement, which owns Ambuja Cements and ACC, made a recent splash in the southern market by acquiring unlisted player Penna Cement for more than Rs 10,000 crore, and has been eyeing other assets. UltraTech, which has been carrying out greenfield and brownfield expansions in the southern market, is in the process ofmerging Kesoram Industries' cement assets with itself. Kesoram has a significant presence in some southern India markets, with UltraTech also said to be in talks to acquire Orient Cement, owned by UltraTech chairman Kumar Mangalam Birla's uncle CK Birla. Orient Cement too has a significant presence in some southern states. Also Read |ÂUltraTech Q1 Results: Net profit flat on-year at Rs 1,695 crore, misses estimates Ultratech Cement incurred several one-time expenses during Q1FY25 due to multiple acquisitions to expand the capacity and network of plants, impacting their P&L. "But this is a one-time effort and our expenses should normalize like any other normal quarter going forward," Daga noted. | null | null | 2024-07-19 18:55 |
moneycontrol.com | https://www.moneycontrol.com/news/business/markets/ultratech-cements-expansion-efficiency-boosts-to-help-lower-costs-by-rs-300-per-tonne-12773356.html | UltraTech Cement's expansion, efficiency boosts to help lower costs by Rs 300 per tonne | With ongoing investments in infrastructure and operational efficiencies, UltraTech is well-positioned to capitalize on market opportunities and sustain growth in the coming quarters, the management noted..Related stories. | UltraTech Cement is poised to reduce cost by Rs 300 per tonne over the next three quarters, thanks to an expanding network of plants, decreasing lead distance and other reductions. In a post-earnings call on July 19, India's largest cement manufacturer's management highlighted its strategic initiatives to enhance cost efficiency. Ultratech Cementreported a significant reduction in lead distance from 400 kilometres to 385 kilometres, which has resulted in cost savings of approximately Rs 45 per ton of cement. This improvement is crucial as logistics costs represent a major expenditure in cement production, said CFO Atul Daga. The management anticipates further reductions in the lead distance as they expand their network from 59 to over 70 plant locations, which will contribute to additional cost savings and operational efficiencies. Also Read |ÂPrice hikes possible after monsoon in second half of 2024: Ultratech Cement Regarding expansion, UltraTech Cement's management showcased its growth initiatives both domestically and internationally. They completed an open offer to acquire a 54 percent stake in Black White Cement in the UAE, reinforcing their position in the white cement and putty markets. The company also continues to lead in grey cement in the UAE. Domestically, UltraTech is ramping up its Waste Heat Recovery Systems (WHRS) capacity, with 23 megawatts commissioned this quarter, bringing the total to 301 megawatts. The focus on increasing WHRS capacity and renewable energy usage aligns with their strategy to reduce power costs and enhance sustainability. Looking ahead, UltraTech Cement's management expressed optimism about the business outlook. Despite typical monsoon-related fluctuations expected in Q2, the overall sentiment remains positive, with strong demand anticipated in rural markets. The company is confident that the momentum will pick up in Q3 as construction activity ramps up. With ongoing investments in infrastructure and operational efficiencies, UltraTech is well-positioned to capitalize on market opportunities and sustain growth in the coming quarters, the management noted. Also Read |ÂUltraTech Cement sees double-digit volume growth in FY25, industry volumes to grow 7-8% It is worth mentioning that Ultratech Cement incurred several one-time expenses recently due to multiple acquisitions to expand capacity and the network of plants, impacting their P&L. Earlier this year, UltraTech Cement acquired a 1.1 mtpa cement grinding unit in Maharashtra from India Cements for Rs 315 crore. In 2023, it acquired the 10.75 mtpa cement business of Kesoram Industries. Atul Daga shared that Ultratech has received the CCI approvals for the Kesoram transaction. "This is a one-time effort and our expenses should normalize like any other normal quarter going forward," Daga said. | null | null | 2024-07-19 18:54 |
moneycontrol.com | https://www.moneycontrol.com/news/business/economy/govt-plans-to-delink-state-and-central-premium-contributions-from-crop-insurance-claims-12770383.html | Govt plans to delink state and central premium contributions from crop insurance claims | Four crore farmers were covered under the crop insurance (2023-24), which is the highest ever..Related stories. | The government is working on delinking the premium contribution by the central government and states under thePradhan Mantri Fasal Bima Yojana(PMFBY) and has directed the insurance companies to issue the policy and process at least 70 percent of the claim even if there is a delay in receiving the states' contribution of the premium, an official said. The move is aimed to address the late disbursement of claims to farmers under PMFBY. “The government is trying to desegregate the farmer, state and Centre’s share of premium under PMFBY. The policy is not issued till the state and Centre’s share of the premium gets credited to the insurance company. Eligibility of claim arises only after that. The government is thus delinking the Centre and states’ share of the premium,” the official toldMoneycontrol. The premium split The premium for the scheme is heavily subsidised, with the central and state governments sharing the major portion of the premium burden. The subsidy ratio is typically 50:50 between the central and state governments. For North Eastern and Himalayan states, the ratio is 90:10. Farmers pay a nominal premium rate under the scheme – 2 percent forKharif crops, 1.5 percent for Rabi crops and 5 percent for commercial and horticultural crops. “The government has given directions to the public and private insurance companies that after the delinking, once the farmers’ share and Centre’s share of the crop insurance premium is received, they should not wait for the state’s share to issue the policy and settle claims. The insurance companies must disburse at least 70 percent of the claim liability to the farmers in such cases. The remaining claim may be processed once the state’s share of the premium is received by the insurance company,” he said. Delays in the release of the state's share of the premium under the crop insurance scheme have been a significant issue causing late disbursement of claims to farmers. State governments often face financial constraints andbudgetary limitations, which can delay the timely release of their share of the premium. The states may also prioritise other expenditures over the release of funds for crop insurance causing delay, the official added. Currently, four crore farmers are covered under crop insurance (2023-24), which is the highest ever. “Ensuring timely release and disbursement of the premium share by states is crucial for the effective functioning of PMFBY and the timely settlement of claims to benefit the farmers. As a result of delinking, once the Centre’s premium is received, the insurance company will have to issue a policy and also make claim payments,” he said. | null | null | 2024-07-19 18:27 |
moneycontrol.com | https://www.moneycontrol.com/news/business/economy/business-sentiment-sees-further-improvement-in-first-quarter-of-fy25-ncaer-nse-survey-12773314.html | Business sentiment sees further improvement in first quarter of FY25: NCAER-NSE Survey | The survey indicated that firms expecting an improvement in conditions went up to 71 percent from 66 percent earlier..Related stories. | Business sentiment in India improved to 149.8 from 138.2 in the first quarter of the fiscal year, indicating a carry forward of momentum from the previous year, according to a survey released by NCAER and NSE on July 19. The results come just days before the government is to release its economic survey, predicting future trajectory of growth and Budget. The survey indicated that firms expecting an improvement in conditions went up to 71 percent from 66 percent earlier. The survey interviewed 497 firms across six cities in June to find out their assessment of the present climate, capacity utilisation, financial conditions, and economic assessment over the next six months. “Firms’ perception about the improvement in their own financial position is particularly noteworthy as the share of such firms was 67 percent, the highest since Q3 of 2010-11 (76%),” said Bornali Bhandari, professor, NCAER. The number of firms perceiving an improvement in investment climate went up to 60 percent from nearly half in the previous quarter, with 97.8 percent reporting capacity utilisation at optimal levels. “It also found an uptick in the labour markets’ sentiments as compared with the previous quarter, with more firms planning to increase hiring,” the report noted. The Purchasing Managers’ Index for both manufacturing and services has recorded improvements in activity, with firms reporting multi-year highs in job creation. Notably, the Indian economy is poised to grow faster than earlier expected according to international agencies and the Reserve Bank of India. The IMF recently revised India’s growth forecast upward, expecting the economy to grow 7 percent in FY25, while the RBI expects India to log 7.2 percent growth in the current fiscal. The Indian economy grew 8.2 percent in FY24, recording a fourth straight year of over 7 percent growth. | null | null | 2024-07-19 18:00 |
moneycontrol.com | https://www.moneycontrol.com/news/business/economy/portal-to-address-non-tariff-issues-within-2-3-months-commerce-ministry-12773268.html | Portal to address non-tariff issues within 2-3 months: Commerce ministry | Non-tariffs measures on trade rise.Related stories. | The ministry of commerce and industry will have a portal ready to address non-tariff issues within the next two-three months, the additional secretary, department of commerce, said on July 19. “We are monitoring through a committee and coming up with a portal on sanitary and phytosanitary and technical barriers to trade issues,” Rajesh Agrawal said. “We will try to get all exporters who raise concerns. There is a task force looking at resolution strategy and a portal will monitor efforts,” he noted. According to an UNCTAD study, the trade costs of non tariff measures are more than double of tariff measures. Agrawal noted that as trade increases, such kinds of measures are expected to increase. Certain countries had imposed restrictions on some of the products of Indian spice companies after they had found that levels of ethylene oxide exceeded their limits. India’s Spice Board has created a standard operating procedure in consultation with the companies to address such concerns. India needs to standardise more and come out with more regulations to catch up with increasing imposition of non-tariff measures, he said. “India is already doing this for the domestic and international market,” Agrawal noted, highlighting that the country has been increasingly taking steps to address issues of trade. He cited example of sesame seeds, where a standard operating procedure has led to rejections becoming negligible. India has issued over 400 notifications in technical barriers to trade since 1995, half of which have come in the last five years itself. “As the economy matures such measures increase,” he added. | null | null | 2024-07-19 17:23 |
moneycontrol.com | https://www.moneycontrol.com/news/business/economy/moneycontrol-pro-panorama-a-rate-of-debate-12772990.html | Moneycontrol Pro Panorama | A rate of debate | It is that interest rate where the economy is growing at potential and the inflation rate is at target..Related stories. | Dear Reader, The Panorama newsletter is sent to Moneycontrol Pro subscribers on market days. It offers easy access to stories published on Moneycontrol Pro and gives a little extra by setting out a context or an event or trend that investors should keep track of. If there is one debate that refuses to die among economists, it is that of the real interest rate, or the natural rate of an economy. Natural rate is the interest rate at which an economy operates at full capacity without being inflationary. In other words, it is that interest rate where the economy is growing at potential and the inflation rate is at target. India’s natural rate was estimated to have been reduced to 1.1 percent, after the global financial crisis. But much has changed since then and a punishing pandemic in 2020 has upended several economic assumptions across the globe. The Reserve Bank of India’s staff has updated the natural rate and estimates it to be in the 1.4-1.9 percent range for the fourth quarter of FY24, far higher than 0.8-1.0 percent estimated for the third quarter of FY22. This is consistent with the view that the economy’s potential growth rate has increased post pandemic, in contrast to popular beliefs of the pandemic dragging the potential down for a long period. The RBI believes that there are several structural factors contributing to an increase in India’s growth potential. Aside the tax reforms such as the goods and services tax (GST), demographic changes that boast of a large share of working class population, fiscal prudence, and technological innovation leading to productivity gains would contribute to increasing economic potential. But natural rate is an estimate that tends to change with changing economic conditions, perhaps the reason why traders and investors do not prefer to overthink it. Why should you and I and other lay people spend time on it? The difference between the natural rate and the interest rates prevailing in the economy is a measure of monetary policy stance. Whether we are savers or investors, we are thrust smack in the middle of monetary policy in every economic decision. If the RBI believes that India’s economy can withstand a natural rate higher than previously thought, it means that the central bank won’t be in a hurry to cut policy rates. As such, the communication from central bank officials has been hawkish so far. Note that the crux of the argument given by the two dissenters in the monetary policy committee was based on natural rate. Member Jayanth Varma believes that the current real policy rate of 2 percent is restrictive and should be cut. Ashima Goyal too shared the same view. But if the RBI’s study shows the economy won’t slow down at 2 percent natural rate, there is no need for it to cut policy rates until it sees inflation back to 4 percent on a durable basis. What’s more, once retail inflation eases towards the target, policy rate cuts may not be more than a cumulative 50-75 basis points since the repo rate is at 6.5 percent. That said, there are numerous caveats to this esoteric metric. To start with, there are many models to determine the natural rate and the rate is transitory in nature, too. “Balancing the risk of tightening monetary policy too much against the risk of tightening too little is essential in deciding the policy rate, rather than taking the decision solely based on the natural rate which is imprecise in values,” the RBI said in its study. Needless to say, the natural rate would remain an important input, but just one of the inputs in framing monetary policy. “Policymakers and financial market participants must continuously refine their approaches to estimating the natural rate to ensure that it remains a reliable guide for policies that aim to achieve sustainable economic growth and stability,” the RBI said the study. Analysts are expecting the RBI to cut policy rates only by the fourth quarter of FY25. Meanwhile, the US Federal Reserve is expected to begin cutting rates in September. An increase in the interest rate differential between the US and India would add to the bullishness surrounding India right now. Fund managers are growing bearish on China which is bringing in large capital flows into Indian markets. A higher natural rate proposed by the RBI study should prompt us to cut back on hopes of a policy pivot. Would the MPC dissenters relook at their view after this study? That is something to watch for. Investing insights from our research team Infosys Q1 FY25 – Does all-round strength make the stock worthy of fresh allocation? Will the Make-in-India push get a fillip from Union Budget 2024? Sanstar IPO: Does this maize-based ingredients play make a worthy investment? Weekly Tactical Pick: Why should you look at this cement stock ahead of Union Budget 2024? Tata Technologies: Driving in the slow lane Havells India Q1: Scorching results post a sweltering summer What else are we reading? Union Budget 2024: The myth of central government neglect of social sectors Budget Snapshot | A long view of India’s central government budgets Union Budget 2024: A look at the potential market movers Will Union Budget 2024 up the stakes in the global value chain gamble? The $230 million crypto theft at WazirX is a wake-up call for Indian regulators, government Chart of the Day: India’s growing LAP market underscores need for easy capital to small businesses Global Fund manager survey: The shape of things to come As IT slumps, can Indian pharma pick up the slack? It’s time to stop kicking the BSNL-MTNL can down the road Personal Finance: Four things to remember when investing in a thematic fund Big tech shares lose lustre as US market rocked by violent rotation (republished from the FT) Boosting Agricultural Exports: Budgeting for infrastructure, high-value crops, and ag-tech Union Budget 2024-25 to balance investment and consumption Union Budget 2024 expected to focus on India’s manufacturing boom through tax incentives Technical Picks:ÂHDFC Bank,ÂWipro,ÂCopper,ÂCholamandalam Investments, andÂFinolex Industries(These are published every trading day before markets open and can be read on the app).Aparna IyerMoneycontrol Pro  | null | null | 2024-07-19 15:08 |
moneycontrol.com | https://www.moneycontrol.com/news/business/economy/india-digital-public-infrastructure-is-charting-the-journey-towards-becoming-1-tn-digital-economy-by-2027-28-12772864.html | India digital public infrastructure is charting the journey towards becoming $1-tn digital economy by 2027-28 | IndiaŌĆÖs ŌĆśDigital IndiaŌĆÖ programme was launched in 2015..Related stories. | The Economic Survey of India for 2023-24ŌĆöthe government's annual report cardŌĆöwill be tabled by Minister of Finance and Corporate AffairsNirmala Sitharamanin Parliament on July 22. Among other things, it┬Ā is expected to highlight IndiaŌĆÖs achievements in digital public infrastructure. And those achievements are nothing to sneeze at. ŌĆ£India did an incredible pole vault in digital public infrastructure. We achieved in┬Ānine years what would have taken 50 years without DPI,ŌĆØ IndiaŌĆÖs G20 sherpa Amitabh Kant had said recently.Digital public infrastructureor as it is commonly referred to colloquially, the India stack, lies at the intersection of technology, market and governance, enabling remarkable innovation and palpable change across different realms. Aadhaar, DigiLocker and Unified Payment Interface (UPI) are some of the┬Āprime examples of IndiaŌĆÖs DPI services. UPI achieved the milestone of processing 12 billion transactions in a month in January 2024. The government is aiming to be a $1-trillion digital economy by 2027-28. As part of this, the┬ĀDigital India programme was launched in 2015. India aims to develop digital infrastructure as a core utility for every citizen. Between 2015 and 2021, rural internet subscriptions increased by 200 percent, compared to a 158 percent increase in urban areas, aided, no doubt, by the low base effect. This demonstrates the government's intensified efforts to equalise digital connectivity between rural and urban regions, Economic Survey 2023 added. To be sure, the explosion in digital payments has been a driving force in this┬Āincreased connectedness. ŌĆ£Today in India, UPI is used at all levels from street vendors to large shopping malls, with the highest percentage of digital transactions globally, accounting for nearly 46 percent share. All these proved to be building blocks for India to steer through the COVID-19 pandemic, be it transfer $4.5 billion into the bank accounts of 160 million beneficiaries or facilitate distribution of 2.5 million vaccinations in two years with digital vaccine certificates on mobiles. We are far advanced in terms of digitisation and I am confident, this report will be the guiding North Star for the world to follow,ŌĆØ Kant said on July 15, referring to the┬Āfinal report of IndiaŌĆÖs G20 Task Force on Digital Public Infrastructure. The bedrock of all this is Aadhaar, the digitised biometric proof of identity issued by the Unique Identification Authority of India┬Ā Now, around 1.3 billion Indians possess this digital ID and on average 10 million eKYC requests per day┬Āare being received and facilitated through Aadhaar. Meanwhile in the payments space, UPI facilitates 13 billion transactions monthly, serving about 350 million individuals and 50 million merchants, and the DPI-enabled direct transfer of benefits has saved the government $41 billion across central government schemes. India during its G20 presidency steered a strong digital agenda by showcasing┬Āits achievements in the field of DPI and gathered unanimous support from the member countries. The final report, the┬Ā'G20 Task Force on Digital Public Infrastructure for Economic Transformation, Financial Inclusion and DevelopmentŌĆÖ was released on July 15 in New Delhi. The work of this task force had led to the acceptance of the definition and framework of DPI during IndiaŌĆÖs G20 presidency and will be taken forward for implementation during the Brazilian and South African presidencies. Of course, none of this would have been possible without the information technology backbone and particularly, the telecommunications technology and capability to back it up. From its faltering early steps, the Indian telecom sector is now among the most inclusive, with call and data rates that are among the lowest in the world. IndiaŌĆÖs 5G rollout is also among the fastest in the world, and its UPI platform has become a global case study for financial inclusion. India has also agreed to share its digital public infrastructure resources with the Global South. | null | null | 2024-07-19 14:51 |
moneycontrol.com | https://www.moneycontrol.com/news/business/economy/spatial-spread-of-monsoon-needs-to-correct-for-food-inflation-to-cool-say-economists-12773049.html | Spatial spread of monsoon needs to correct for food inflation to cool, say economists | Rice production affected by spatial anomalies.Related stories. | A course correction for the monsoon appears essential to tame down the simmering price rise in India. Inflation in rice and pulses is likely to stay elevated unless the spatial spread of monsoon doesn't alter, according to economists. AMoneycontrolanalysis of agriculture ministry data shows that some states like Uttar Pradesh, Rajasthan, Haryana and West Bengal are recording below-normal sowing of rice. “While overall monsoon is normal at pan-India level, there is considerable volatility at the state level, spatial spread is a concern,” said Paras Jasrai, senior analyst at India Ratings and Research. While rice and pulses sowing has improved compared with the previous year, data shows that it is still lower than the normal level. While rice sowing during the kharif season, for instance, shot up 20 percent from the previous year as of July 12, it was down 44 percent from normal for the corresponding week. Normal area is calculated as an average of corresponding week between 2019-20 and 2023-24. In case of pulses, the coverage was up 12.8 percent from the previous year, but went down 2.8 percent from the normal average. “One trend which is clear is the impact of climate change on the rainfall pattern across the country,” said Jasrai. As on July 18, India’s rainfall deficit rose above 3 percent, with 10 states facing over 25 percent rainfall deficit. Jharkhand, Punjab and Haryana are among the larger states facing the maximum brunt of rainfall deficits. While Jharkhand has a shortfall of 47 percent, Punjab and Haryana are down a third from normal. In Jharkhand, sowing has been a percent below normal for both rice and pulses. In Punjab, rice sowing was down 3 percent below normal. Uttar Pradesh, which has seen sporadic rains cover up the deficit was the worst affected. The state witnessed 11.5 percent below normal sowing of rice until July 12. The trend in Rajasthan has not been any better, with pulses sowing down 4 percent from normal and reservoir levels sinking 26 percent below normal. In Uttar Pradesh, the deficit is pegged at 20 percent. Millet production was 5 percent below normal for Rajasthan and 25 percent down compared with the previous year. “Rajasthan is more rain dependent and hence monsoon still more critical,” said Madan Sabnavis, chief economist at Bank of Baroda. Inflation troubles The low production from the previous year has already contributed to higher food inflation. India’s food inflation rose to 9.4 percent in June compared with 8.7 percent in the previous month, as cereals, vegetables and pulses inflation remained in double digits. “These spatial anomalies are likely to keep inflation high,” said Sabnavis. Pulses inflation has remained in double digits for 13 consecutive months, it was 16.1 percent in June. Rice inflation has bene in double digits for 21 months, it was a high 12.2 percent in June. “A prospective La Niña in August gives some hope of prices cooling off,” said Jasrai. | null | null | 2024-07-19 14:51 |
moneycontrol.com | https://www.moneycontrol.com/news/opinion/india-budget-2024-capital-gain-tax-regime-is-too-cluttered-it-needs-an-overhaul-12772989.html | India Budget 2024: Capital gain tax regime is too cluttered. It needs an overhaul | Global expansion of Indian businesses have collectively added to the complexities of computing capital gains..Related stories. | By SR Patnaik,Âand Reema Arya TheBudget 2024is less than a week away and the taxpayers are eagerly waiting for the revisions and amendments to be introduced by the Finance Minister Nirmala Sitharaman. Considering this is the first budget after the general election, it undoubtedly carries the weight of numerous, and at times, unreal expectations. Among the myriad of reforms awaited, a comprehensive overhaul of the capital gainstax regimestands out as a top priority for corporations, individuals, and other stakeholders. This is because while the capital gains taxation regime has evolved over the years and the same has led to creation of a large number of sub-categories for taxation of every type of capital asset based on the time-period for which it was held, how it was acquired and being sold, the currency used to acquire, if the asset was acquired as a part of earlier reorganisation, etc. With increasing internationalisation of Indian businesses and economy, increasing collaboration between Indian and global businesses and global expansion of Indian businesses have collectively added to the complexities of computing capital gains. These aspects have led to disparity on account of rate of tax, benefits of indexation or foreign currency fluctuation, benefits available for taxpayers and incentives offered, etc. and creates scope of confusion amongst the various categories of taxpayers. On account of the above factors, it is expected that the Finance Minister will pay heed to the increasing demand for rationalisation and simplification of thecapital gains taxation regimein India. Standardisation in the period of holding Capital gains are categorized into long-term capital gains or short-term capital gains based on the holding period of the underlying asset. For instance, listed equity shares and equity-oriented funds held for more than 12 months are classified as long term. In the case of unlisted equity shares and real estate, the holding period is 24 months. For other capital assets like debt funds, InvIT and REIT, the threshold period is 36 months to qualify as long term. Instead of such multiple categories, the budget may simplify and make it only two categories (i.e. short-term of 24 months or less and long-term for assets held for more than 24 months). Rate of tax should be lowered Short-term capital gains tax is levied at the applicable tax rates, which may go up to 40 percent for foreign companies or 30 percent for individuals, on which surcharge and education cess are also payable, which leads to the chargeable rate going all the way up to 44 percent and 39 percent respectively. This could be regarded as too high by global standards. Hence, it is expected that the budget may bring down the effective rate to around ~30 percent. Raise exemption limits for stock market transactions Since the reintroduction of LTCG on listed equity instruments in the year 2018, the exemption threshold for equity shares has remained steady at Rs 1 lakh. Increasing this limit is expected to further encourage investments and give a push to the economic activity, as more and more individuals would be interested to engage and book gains from the stock market. Follow |ÂUnion Budget Expectations 2024 Live Updates Simply benefits of forex flutuations The benefit of foreign currency fluctuation to foreign investors is not available in certain cases which makes it extremely unattractive for such non-resident investors. Moreover, there are certain other instances wherein either the purchase or the sale is done in another currency and the investors are not permitted to claim deduction for such fluctuation. It would be help if the budget addresses these concerns and simplifies the system of claiming such fluctuations. Change in the manner of levy of buyback tax Buyback tax is levied at the flat tax rate of 20 percent which goes up to 23.296 percent to be deposited by the company undertaking buyback. The base on which such tax is calculated also provides for rate at which shares were originally issued, irrespective of multiple times at which it was already sold in the interim, leading to unavoidable double taxation. With the advent of technology, it is possible to abolish the buyback tax and make it taxable in the hands of the shareholders – similar to how dividend is taxed. This shall play a significant role in appropriate distribution of profits to the shareholders. Conclusion The Government has been continuously aiming towards devising methods to simplify the tax system, improving the ease of doing business and creating an investor-friendly environment for investors. One of the primary methods to achieve this aim is through standardising and rationalising the convoluted tax structure, thereby reducing the unnecessary litigation and the wastage of infrastructure in fighting the same. If the proposed changes are implemented, it could lead to a more efficient tax regime that would comprehensively benefit the investors, the government and eventually the broader economy. SRÂPatnaik is Partner & Head-Taxation at Cyril Amarchand Mangaldas and Reema Arya is a consultant. Views are personal and do not represent the stand of this publication. | null | null | 2024-07-19 14:40 |
moneycontrol.com | https://www.moneycontrol.com/news/business/economy/what-will-be-economic-surveys-outlook-on-growth-12772976.html | What will be Economic Survey’s outlook on growth? | Economic Survey comes amidst agencies raising India's forecasts.Related stories. | The Economic Survey, which will be presented on July 22, will give the growth outlook for the current financial year at a time when India has seen a spate of forecast revisions from international agencies. The survey gives a detailed account of the state of the economy, prospects and the policy challenges. Prepared by chief economic adviser V Anantha Nageswaran, the survey will be presented a day ahead of theÂbudget. The International Monetary Fund (IMF) raised India’s growth forecast for FY25 to 7 percent from 6.8 percent projected in April, according to its World Economic Outlook released on July 16. "The forecast for growth in India has also been revised upward, to 7 percent, this year, with the change reflecting carryover from upwardrevisions to growth in 2023 and improved prospects for private consumption, particularly in rural areas," the IMF said. This is the second revision from the fund, it had earlier projected 6.5 percent growth for FY25. In June, the Reserve Bank of India revised the growth forecast to 7.2 from 7 percent. The country has grown over 7 percent over the last three years. The economy grew 8.2 percent in FY24, with investment and manufacturing supporting growth. On July 17, Asian Development Bank kept India’s FY25 growth forecast unchanged at 7 percent from its April outlook. Fitch Ratings, on June 18, revised FY25 growth forecast to 7.2 percent from 7 percent estimated in its March outlook, citing recovery in consumer spending. “Investment will continue to rise but more slowly than in recent quarters, while consumer spending will recover with elevated consumer confidence. Purchasing managers survey data point to continued growth at the start of the current financial year,” the global ratings agency said in its Global Economic Outlook. | null | null | 2024-07-19 14:24 |
moneycontrol.com | https://www.moneycontrol.com/news/economy/policy/charting-the-future-chief-economic-advisor-v-anantha-nageswaran-12772928.html | Charting The Future: Chief Economic Advisor V Anantha Nageswaran | Chief Economic Advisor V Anantha Nageswaran.Related stories. | V Anantha Nageswaran, the Chief Economic Advisor (CEA), has completed two years in this pivotal role. The CEA, who prepares the economic survey along with his team, has been pivotal in shaping the country's economic policies. He succeeded KV Subramanian, and was appointed the CEA in January 2022, days ahead of the tabling of the year's economic survey on January 31, which precedes the union budget. In his second year as CEA, Nageswaran was deeply involved in India's G20 Presidency in 2023, particularly in the finance track. He has also been vocal on global issues such as climate finance and the assessment methodologies used by global ratings agencies for emerging markets like India. Before being appointed the CEA, Nageswaran served as a part-time member of thePrime Minister’s Economic Advisory Council(PMEAC) from 2019 to 2021. In this role, he contributed to shaping economic policy and providing strategic advice on various economic issues​. Nageswaran's academic background includes a post-graduate diploma in management from the Indian Institute of Management (IIM), Ahmedabad. He also holds a PhD in finance from the University of Massachusetts, Amherst, where he focused on exchange rate behaviour. He's taught at business schools and management institutes in India and Singapore, and authored four books, including ‘The Economics of Derivatives’ and ‘The Rise of Finance: Causes, Consequences and Cures.’ Nageswaran has also held several leadership roles in his 17-year-long career in the corporate sector, with UBS, Credit Suisse, and Julius Baer. He's worked in roles such as Head of Research and Investment Consulting for Credit Suisse Private Banking in Asia, Global Chief Investment Officer at Julius Baer and in various roles related to macro-economic and capital market research in UBS. His expertise in macroeconomic and capital market research has been widely recognised. With his diverse background and extensive expertise, Nageswaran continues to play a critical role in shaping India's economy,  advising the government on economic policy, tackling challenges such as income inequality and unemployment, and contributing to key documents like the economic survey. | null | null | 2024-07-19 14:01 |
moneycontrol.com | https://www.moneycontrol.com/news/business/hdfc-bank-csr-spend-crosses-rs-945-crore-in-fy24-12772913.html | HDFC Bank CSR spend crosses Rs 945 crore in FY24 | HDFC Bank CSR spend crosses Rs 945 crore in FY24.Related stories. | Private sector HDFC Bank has reported a corporate social responsibility (CSR) spend of Rs 945.31 crore for the financial year 2023-24, an increase of nearly Rs 125 crore from the previous year. The bank's CSR programme, Parivartan, has been active for over a decade and its initiatives, spread across 28 states and 8 Union Territories, have impacted over 10 crore lives, HDFC Bank said in a release. The Parivartan initiatives have reached over 9,000 villages, impacting over 10 lakh households, as per the annual report. The initiatives have covered 85 out of the 112 districts identified in the Aspirational Districts Programme (ADP). "By addressing the critical areas of rural development, education, skill enhancement, healthcare, financial literacy, and the environment, we aim to support sustainable and inclusive growth in the communities in which we operate," Kaizad Bharucha, Deputy Managing Director of HDFC Bank, said. Bharucha, who also looks after CSR and Environmental, Social and Governance (ESG) functions in addition to his other responsibilities, said the bank has been able to make an impact in the lives of over 10 crore Indians so far. Through a participatory, bottom-up, and consultative approach, Parivartan focuses on creating sustainable impact within marginalised communities, especially women, it said. The initiatives have facilitated the creation of over 9 lakh women entrepreneurs and the formation and revival of more than 10,000 Self-Help Groups (SHGs), it added. Additionally, the bank's skilling programmes have trained over 3 lakh youth, providing essential vocational skills to enhance employability and create sustainable livelihoods. In its efforts towards promoting education, it has trained over 20 lakh teachers and supported 2.86 lakh schools, benefitting more than 2 crore students through remedial classes, learning camps, and scholarships for underprivileged children, it added. | null | null | 2024-07-19 13:03 |
moneycontrol.com | https://www.moneycontrol.com/news/business/kpi-green-energy-gets-new-100-mw-hybrid-project-12772911.html | KPI Green Energy gets new 100 MW hybrid project | KPI Green Energy gets new 100 MW hybrid project. | KPI Green Energy on Friday said it has secured an order for 100 MW hybrid energy project from Aether Industries. The projects are scheduled to be completed in the financial year 2024-25, in various tranches as per the terms of the order, the company said in an exchange filing. "We have received a new order for a 100 MW hybrid captive solar power project under the captive power producer segment of the company," it said. The company did not disclose any further details regarding the order. KPI Green Energy Ltd (formerly known as KPI Global Infrastructure Limited), is the renewable energy vertical of KP Group. | null | null | 2024-07-19 13:00 |
moneycontrol.com | https://www.moneycontrol.com/news/opinion/union-budget-2024-25-to-balance-investment-and-consumption-12772859.html | Union Budget 2024-25 to balance investment and consumption | The Budget is expected find a balance between supporting investment and consumption..Related stories. | By K. Ravichandran With theUnion Budgetfor FY2025 just a week away, anticipation has built up around the changes that is would bring about. While expectations are rife, we believe that the Government of India (GoI) will likely avoid major changes from what was penciled into the Interim Budget that had been presented prior to the Parliamentary Elections. Nevertheless, the Budget is expected to provide support to the productive sectors of the economy, by finding a fine balance between supporting investment and consumption. Indian macros are undoubtedly looking healthy, which finds a mirror in the performance of our rated portfolio as well. For instance, in FY2024, ratings of 330 entities were upgraded and 156 ratings were downgraded, resulting in a credit ratio of 2.1x. In 3M FY2025, ratings of a further 62 entities were upgraded while those of 39 entities were downgraded, with the credit ratio remaining quite healthy at 1.6x. One of the factors that has underpinned the sustenance of the post-Covid economic growth momentum has been government capital spending. In our view, the government must continue to support infrastructure creation via the budget. In this regard, we believe that the hikes in the budgeted capex of the Ministry of Road Transport and Highways and the Ministry of Railways were quite lacklustre, at just 2-6%, in the Interim Budget. These should be raised to double digits, by redistributing the Rs 700 billion that were earmarked for ‘new schemes’ under the Finance Ministry. This would enable a higher spending on infrastructure, without impacting the government’s aggregate capex number of Rs 11.1 trillion for the fiscal. On the other hand, the common refrain is that the private sector capex cycle appears underwhelming on the whole, which gives rise to the market expectation of relief in corporate income tax; in our assessment, the GoI is unlikely to bring in drastic changes on this front. There are signs of a pick-up, albeit uneven, in private capex, in a variety of sectors such as cement, steel, automobiles, aviation, hotels, data centers etc. Further, there is a convergence of conditions that are necessary, although clearly not sufficient, for a kick-off of a multi-year private capex cycle. These include elevated capacity utilisation levels, sizeable profits over the last couple of years, and cleaner corporate and bank balance sheets. Moreover, the policy interest rates have been stable for some time. While the timing is not as yet crystal clear, the next policy action is expected to be a cut, kicking off a shallow rate cut cycle. As a result, any major changes in corporate taxes that lower hard-won revenue gains, would be counterproductive to the fiscal health. Instead, the Budget could focus on measures that boost demand to help support the capex cycle. For instance, urban consumption has been rather uneven over the recent quarters, with the low- and middle-income households bearing the brunt of high food inflation. A relief on personal income taxes, either by the way of raising minimum thresholds for paying taxes or via exemptions, would boost consumption, particularly at the non-premium end of goods and services. The revenue foregone needs to be carefully calibrated however, especially to make sure that not too many taxpayers fall out of the tax net. On the rural front, a consumption boost can be attempted by raising expenditures on rural-focused schemes vis-à -vis the Interim Budget, with the help of the additional headroom on the revenue side. This would play an important role in providing some support to the rural demand, which was impacted by an inadequate and uneven monsoon in the previous fiscal. The government must also take cognizance of sector-specific issues, such as the high GST rate of 28% prevailing on cement. Bringing this down to a lower tax bracket, would make homes more affordable and could extend the revival that is currently being witnessed in the residential real estate market. This would also reduce construction costs for infrastructure projects. While this is outside the purview of the Union Budget and is relevant for the GST Council, any signal to this end would be eagerly watched. Among the key asks for the financial sector, ICRA believes that some of the PSU general insurance entities would need further support from the GoI via fresh capital infusion. With PSU banks in good health, capital infusion into this sector appears unlikely. Additionally, the government must also take steps to promote the corporate bond market to provide long term funding for the infrastructure and financial sectors. Further, removal of the anomaly on the taxation of debt mutual funds vs. equity mutual funds is awaited, to bring in parity across different asset classes viz real estate, debt and equity. Even taxation of bank deposits will require recalibration vs debt mutual funds. The GoI is expected to provide a medium-term fiscal consolidation roadmap beyond FY2026 in the upcoming budget. While a gradual cut in the fiscal deficit target would be appreciated over the medium term, it must emphasize that this will not come at the cost of capex. In fact, we believe that the new medium-term target must be adjusted to account for the ‘on-budgeting’ of off-budget capex that has taken place over the last couple of years. This would ensure that budgetary support to infrastructure creation continues over the medium term. Ravichandran, Executive Vice President & Chief Ratings Officer, ICRA Limited. Views are personal and do not represent the stand of this publication. | null | null | 2024-07-19 12:59 |
moneycontrol.com | https://www.moneycontrol.com/news/business/economy/nobody-expects-rbi-to-be-cheerleader-coordination-with-govt-helped-fast-revival-in-economy-guv-das-12772914.html | Nobody expects RBI to be cheerleader, coordination with govt helped fast revival in economy: Guv Das | Nobody expects RBI to be cheerleader, coordination with govt helped fast revival in economy: Guv Das.Related stories. | Governor Shaktikanta Das on Friday said the Reserve Bank's relations with the government have been "smooth" during his nearly six-year term, and credited the close coordination between the two for the quick revival of the economy after the pandemic. Speaking at an event organised by Financial Express here, the bureaucrat-turned-central banker said nobody has expected him to be a "cheerleader" for the government during his term. "I am saying from my experience. Nobody expects RBI to be a cheerleader. I have had no such experience," he said, responding to a specific question about a lament made by one of his predecessors in a recent book. Asked if he is open for a new term at Mint Road, Das said he is very focused on the current assignment and does not think of anything outside that. Das said the RBI is optimistic that its estimate of 7.2 per cent growth for FY25 will be met, and added that with steady growth, the focus of the policy has to be "clearly and unambiguously" on inflation. The inflation elephant is taking pauses and grudgingly moving towards the forest or the 4 per cent target in an unidirectional way, he added. He asked the banks to be watchful on the lag between credit and deposit growth and advised that the former should not exceed the latter. The Governor also warned that the financial system can get exposed to "structural liquidity issues" due to the lag between the credit and deposit growth. Amid concerns about Mule accounts being used by fraudsters, Das asked banks to strengthen their customer onboarding and transaction monitoring systems to check unscrupulous activities. The RBI is working with banks and law enforcement agencies to check Mule accounts and digital frauds, he added. Das said RBI's actions on the unsecured lending have had the desired impact and growth in the focus segment has moderated, but flagged concerns on the high ceilings on unsecured lending kept by some banks despite having high exposures already. He advised prudence to such banks and added that they should avoid exuberance. In light of his comments on Friday, which are also preceded by some actions taken by RBI against some errant entities, Das clarified that no one should assume that there is a big problem with the banking system and added that it remains very stable and healthy. The RBI is not looking at any proposal on allowing corporate entities to own or promote banks at present, Das said, adding that the issue of related party transactions is very real and having any control over them is difficult. He said India does not need a proliferation of banks, but well-governed and stable institutions, he said, adding that the on-tap facility for universal bank licenses continues to be open for those qualifying as fit and proper. | null | null | 2024-07-19 12:58 |
moneycontrol.com | https://www.moneycontrol.com/news/opinion/boosting-agricultural-exports-budgeting-for-infrastructure-high-value-crops-and-ag-tech-12772464.html | Boosting Agricultural Exports: Budgeting for infrastructure, high-value crops, and ag-tech | India stands as a global agricultural leader..Related stories. | By Anand Ramanathan Agriculture's share in India's economy has dropped below 15% due to the rise of the industrial and service sectors, yet its significance remains immense. With nearly three-quarters of Indian families relying on rural incomes, and the majority (some 770 million people or about 70 percent) of the nation’s poor living in rural areas, the agricultural sector is not just an economic pillar but a lifeline for millions. India stands as a global agricultural leader, being the top producer of pulses (27.67 MMT 28% of Global Production), spices (11.14 MMT), milk (213 MMTÂ22% of Global production), and having the largest cattle herd. It also holds the largest cultivation areas for wheat, rice, and cotton, and is the second-largest producer of rice, wheat, cotton, sugarcane, farmed fish, sheep and goat meat, fruit, vegetables, and tea. Despite these accolades India's food security hinges on boosting cereal crops, fruits, vegetables, and milk production to meet the demands of growing population across different income strata. Therefore, a swift evolution towards a productive, competitive, diversified, and sustainable agricultural sector is vital. However, while addressing domestic needs is essential, it is equally important for India to intensify its efforts on boosting agricultural exports. The global market, with its burgeoning demand for high-quality agricultural produce, offers a golden opportunity for India to establish itself as a leading agricultural exporter. This shift is not only economically advantageous but also essential to cater to the Indian diaspora settled abroad, who seek authentic Indian produce and products. As India prepares for its upcoming budget, a prime opportunity emerges to elevate its agricultural exports to new heights.India's share is about 2.4 per cent in global exports and the government wants to increase it to 4-5 per cent over the next few years. By focusing on enhancing post-harvest infrastructure, investing in high-value and climate-resilient crops, and utilizing cutting-edge ag-tech innovations, thebudgetcan usher in a new era of agricultural prosperity. First and foremost, bolstering post-harvest infrastructure is critical. The wastage of produce due to inadequate storage and transportation facilities is a perennial challenge that hampers export potential. Fund allocation to build state-of-the-art storage facilities, efficient logistics networks, and robust supply chains will ensure that India's agricultural produce remains fresh and export-ready. This investment will not only reduce post-harvest losses but also enhance the quality and competitiveness of Indian products in global markets. Follow :Union Budget Expectations 2024 Live Updates Simultaneously, prioritizing high-value crops can transform India’s agricultural landscape. By focusing on crops with significant export potential, such as spices (Pepper, Cardamom, Chilli, Turmeric, Coriander, Cumin, etc.), organic produce, and exotic fruits (Rambutan, Mangosteen, Persimmon, Passion Fruit, Kiwi, Dragon Fruit, Fig, etc.), India can tap into lucrative global markets. The budget can provide the necessary impetus for this shift by offering financial incentives and technical support to farmers willing to venture into these avenues. Climate change is no longer a distant threat; it is a present reality. The unprecedented summer heat is a stark reminder of this crisis. Developing an adaptation strategy is not optional—it is essential. Budget allocation for extension to promoting climate-resilient agricultural practices, investment in development of tolerant varieties, and enhancing access to financial services and technical advice should be considered. Targeted subsidies, research, and development initiatives can encourage farmers to diversify and embrace these climate-resilient crops, leading to increased incomes and economic resilience. Moreover, embracing ag-tech innovations will revolutionize Indian agriculture. The integration of advanced technologies like precision farming, AI-driven analytics, and IoT can optimize farming practices, enhance yield, and ensure sustainable use of resources. This technological leap will not only boost domestic productivity but also enhance the appeal of Indian agricultural exports. States like Telangana and UP have developed state specific agri-tech policies to improve proliferation of ag-tech players. The budget should earmark funds for the development and deployment of these technologies, facilitating access for small and marginal farmers. Establishing ag-tech hubs, promoting start-ups, and fostering public-private partnerships can accelerate the adoption of these innovations, positioning India as a leader in agri-tech. Tech can help in a lot of the initiatives that are being run by the government like the PMFBY (Pradhan Mantri Fasal Bima Yojana), PMKSY (Pradhan Mantri Krishi Sinchai Yojana), Soil Health Card, e-NAM (National Agriculture Market), KCC (Kisan Credit Card), PKVY (Paramparagat Krishi Vikas Yojana), RKVY (Rashtriya Krishi Vikas Yojana), ACABC (Agri Clinics and Agri Business Centres). By adopting technology, farmers can maximize the benefits of these government schemes, leading to improved agricultural productivity, better resource management, and enhanced income. Blockchain technology offers a robust solution to enhance the export potential of GI mapped crops like Tea from Darjeeling, Basmati from the Himalayan Foothills, Alphonso from Ratnagiri, Kalanamak rice from UP, Saffron from Kashmir, etc. Such technologies represent a transformative step towards promoting and marketing the country's hidden agricultural gems. By ensuring authenticity, improving transparency, simplifying certification, and building consumer trust, blockchain can help Indian farmers and producers tap into lucrative global markets. In conclusion, the upcoming Indian budget holds the key to transforming the agricultural sector into a global powerhouse. By focusing on improving post-harvest infrastructure, subsidizing investment in high-value and climate-resilient crops, and providing a conducive ecosystem for expansion of ag-tech innovations and their proliferation at ground level. This infra-produce-tech trifecta can help India boost its agricultural exports, uplift rural incomes, and secure its place in the global agricultural market. The time is ripe for a visionary budget that paves the way for a thriving and resilient agricultural economy. Anand Ramanathan is Partner and Consumer Products and Retail sector Leader at Deloitte India. Views are personal and do not represent the stand of this publication. | null | null | 2024-07-19 12:34 |
moneycontrol.com | https://www.moneycontrol.com/news/opinion/union-budget-2024-expected-to-focus-on-indias-manufacturing-boom-through-tax-incentives-12772573.html | Union Budget 2024 expected to focus on India’s manufacturing boom through tax incentives | The need of the hour now is to elevate India’s viability as the next manufacturing hub..Related stories. | By Namrata Arora, Manisha Jain, Jatin Garg AsBudget 2024looms, whispers of a transformative policy have been gaining momentum with continued impetus on Government of India’s missions ofMake in IndiaandAatmanirbhar Bharat.These projects have had a multiplier effect on the economy - each new manufacturing unit creates a cascade of opportunities across the supply chain, from raw material suppliers to logistics and retail, which further results in creation of job opportunities, not just in manufacturing but in associated industries, helping to alleviate unemployment. Over the past years, various measures have been undertaken to fulfill these missions in a phased manner, with one of the significant moves being the reduced rates of taxation for corporates (22% versus the erstwhile rate of 30% and 25%) and a further concessional rate of 15% for new manufacturing units with a sunset date of March 31, 2024. With Budget round the corner, anticipations are rife on theextension and relaxation in the concessional tax regimes. To set the context, section 115BAB of the Income Tax Act, 1961 (the Act) provides a tax rate of 15% (plus surcharge and health and education cess) on the total income of a domestic manufacturing company, subject to satisfaction of certain specified conditions. One of the pre-requisites to avail the beneficial rate of 15%inter-alia,is that the company should have been incorporated on or after October 1, 2019 and it should already have commenced manufacturing or production on or before March 31, 2024. Section 115BAB aims at incentivising domestic production which not only aids in augmenting India's economic resilience but also in building a self-reliant and sustainable economic framework. This has encouraged the establishment of new ventures, providing a significant uplift to the country's workforce and consequently, socioeconomic development. It aligns with the 'Make in India' campaign to establish India as a leading global manufacturing center and has helped in attracting start-ups to explore opportunities in the formalized sector. This has further bolsteredinnovation and expansion within the industry. In addition to the above, the concessional tax regime is also strategically poised vis-a-vis the overall China plus one sentiment. In the past, lower tax rates have helped pull in more investors in countries such as China, Malaysia, Vietnam, Thailand, and Taiwan. This is why the manufacturing sector has welcomed the concessional tax regime introduction, and why its extension is a strong ask. Given the positive influence of the regime on India’s manufacturing ecosystem, it is expected to be extended to more avenues, including software development, marble block conversion, gas bottling, book printing, and cinematograph film productions, etc. Expanding the concessional tax regime to include segments allied to manufacturing, such as simulation services and testing services, can also be explored to encourage new investments. Apart from these, the government may also consider offering the benefit to limited liability partnerships. Such measures would particularly help smaller enterprises and the MSME sector. Follow :ÂUnion Budget Expectations 2024 Live Updates To supplement the above, the government could also consider expanding the ambit of employment generation incentive. Currently, enhanced deduction is available in respect of new employees with salaries of less than Rs 25,000 per month. It is recommended to increase the salary limit in line with inflation, to widen the scope of deduction that can be claimed under section 80JJAA of the Act. This is likely to reduce taxes for the enterprise, which may be a minimal cost to the exchequer as additional employment could result in incremental individual income-tax collections. Also, the time period for claiming deduction may be increased from 3 years to 5 years. This will ensure that the newly incorporated companies are able to avail the benefit of this provision. It may be noted that companies may incur losses in the initial years of operations and hence, may not be able to claim the full benefit of this deduction. While the existing provisions bar the claim of any other incentive / special deductions to enterprises availing the concessional tax regime, some of the conditions may be further relaxed to widen the ambit of the regime. One example could be allowing weighted deduction for expenditure incurred towards research & development (R&D) and / or including enterprises engaged in R&D within the ambit of section 115BAB. The previous budgets have primarily focused on simplifying the tax structures and rationalising the existing provisions. However, the need of the hour now is to elevate India’s viability as the next manufacturing hub, with a stable and favourable tax regime. It would be interesting to see the changes brought in by the Finance Minister, which will set the economic tone for the next 5 years. | null | null | 2024-07-19 12:34 |
moneycontrol.com | https://www.moneycontrol.com/news/business/zydus-lifesciences-gets-usfda-nod-for-diabetes-drug-12772807.html | Zydus Lifesciences gets USFDA nod for diabetes drug | Zydus Lifesciences gets USFDA nod for diabetes drug. | Zydus Lifesciences on Friday said it has received approval from the US health regulator for its new drug application for a diabetes medication. The company has received final approval for its new drug application (NDA) from the US Food and Drug Administration (USFDA) to market Zituvimet XR (sitagliptin and metformin hydrochloride) extended-release tablets, the drug firm said in a statement. With this, Zydus has all three NDAs of Sitagliptin (base) and combination franchise approved, it added. "Notably, all the three NDAs achieved first-cycle approval (FCA)," the company stated. Zituvimet XR (sitagliptin and metformin hydrochloride) extended-release tablets are indicated as an adjunct to diet and exercise to improve glycemic control in adults with type 2 diabetes mellitus. The product will be manufactured at the group's formulation manufacturing facility in Ahmedabad SEZ, Zydus Lifesciences said. According to IQVIA (MAT May 2024), the US market for DPP-IV inhibitors (oral diabetes medications) and its combinations stood at USD 9.5 billion. Shares of Zydus Lifesciences were trading 2.04 per cent down at Rs 1,161.10 apiece on the BSE. | null | null | 2024-07-19 12:26 |
moneycontrol.com | https://www.moneycontrol.com/news/business/air-india-to-operate-relief-flight-from-mumbai-to-fly-passengers-stranded-in-russia-12772802.html | Air India to operate relief flight from Mumbai to fly passengers stranded in Russia | Air India to operate relief flight from Mumbai to fly passengers stranded in Russia. | Air India on Friday said it is operating a relief flight from Mumbai to fly its Delhi-San Francisco flight passengers, who are stranded at the Krasnoyarsk International Airport (KJA) in Russia since Thursday. In an updated statement on microblogging site X, the airline said it has already received regulatory approvals for the relief flight. Regulatory clearances have been obtained for a relief flight, which is departing from Mumbai to fly the stranded passengers from the Krasnoyarsk International Airport, Air India said. The San Francisco-bound Air India flight from Delhi was diverted to Krasnoyarsk international airport in Russia on Thursday due to a technical issue. Air India's local support was activated to assist passengers, who were required by authorities to remain in the terminal building in the absence of Russian visas. The flight AI 183 had 225 passengers and 19 crew members onboard. Food and beverage amenities at the terminal, which were closed for the evening, have now opened and meals are being provided to all passengers, the airline said. Moreover, representatives from the Indian consulate in Moscow have travelled overnight and are working with the Russian authorities to allow passengers to move to hotels, which have been on standby throughout the night, according to Air India. | null | null | 2024-07-19 12:20 |
moneycontrol.com | https://www.moneycontrol.com/news/business/ramkrishna-titagarh-rail-nearing-financial-closure-for-rs-2180-crore-forged-wheels-project-12772777.html | Ramkrishna Titagarh Rail nearing financial closure for Rs 2,180 crore forged wheels project | Ramkrishna Titagarh Rail nearing financial closure for Rs 2,180 crore forged wheels project.Related stories. | Ramkrishna Titagarh Rail Wheels Ltd (RTRWL), a joint venture between city-based Ramkrishna Forgings Ltd and Titagarh Rail Systems Ltd, is nearing financial closure for its Rs 2,180-crore forged wheels project, a top company official said. Financial closure for a project financing is the stage where all conditions of a financing agreement are met, and the availability of funds becomes imminent. "The project is progressing well. The company has secured statutory clearances and is in the final stages of achieving financial closure," RTRWL board member and Titagarh Rail's Deputy Managing Director Prithish Chowdhary told PTI. RTRWL's greenfield manufacturing facility, located in Chennai, is set to initially house an installed capacity of 228,000 wheels per annum. "The project will be executed in two phases - Phase I, costing Rs 1,810 crore and Phase II (Rs 370 crore). Funding will come from a combination of debt and equity in a 70:30 ratio," Chaitanya Jalan, whole-time director of Ramkrishna Forgings, said. RTRWL, a 51:49 JV, plans to secure around Rs 1,530 crore in debt, having received a stable rating from Ind Ra for its term loan. Equity capital totaling Rs 650 crore will be infused progressively based on the shareholding of the parent companies as construction advances, company officials said. Phase I operations are scheduled to commence from April 2026 with an installed capacity of 114,000 wheels per annum. Phase II will add another 114,000 wheels per annum and begin operations by 2028-29. "The company will initially prioritise fulfilling the requirements of Indian Railways as per the wheel supply agreement programme, with the remainder addressing demand from private players in both domestic and export markets," Jalan said. Under an agreement with the Ministry of Railways, RTRWL will supply forged rail wheels - up to 80,000 wheels per annum (35 per cent of installed capacity) - over 20 years as part of the 'Atmanirbhar Bharat' initiative. | null | null | 2024-07-19 12:03 |
moneycontrol.com | https://www.moneycontrol.com/news/business/spicejet-board-to-consider-raising-fresh-capital-via-qip-on-july-23-12772632.html | SpiceJet board to consider raising fresh capital via QIP on July 23 | SpiceJet board to consider raising fresh capital via QIP on July 23.Related stories. | No-frills carrierSpiceJeton Friday said the company will hold a board meeting on July 23 to consider raising fresh capital through qualified institutional placement (QIP) basis. "... a meeting of the Board of Directors of SpiceJet Ltd will be held on July 23, 2024 (Tuesday), inter-alia, to consider and approve raising fresh capital through issue of eligible securities to qualified institutional buyers by way of qualified institutional placement...," the airline said in a regulatory filing. In January this year, SpiceJet received in-principle approval from the BSE for a fund infusion of Rs 2,242-crore and raised Rs 1,060 crore under preferential issue in two tranches. The Gurugram-based airline announced a multi-fold jump in standalone profit after tax (PAT) to Rs 119 crore for the January-March quarter of 2023-24, over Rs 16.85 crore PAT in the corresponding quarter of the previous year. For the full fiscal year 2023-24, the airline posted a loss of Rs 409.43 crore. It had reported a loss of Rs 1,503 crore in FY23. For the December quarter, SpiceJet reported a loss at Rs 301.45 crore. SpiceJet had posted a profit of Rs 106.82 crore in FY23. The airline has been struggling to keep afloat for many quarters now and has reportedly not deposited the Employee Provident Fund Contributions to its 11,581 staff since January. As on July 19, as many as 33 aircraft -- 15 Boeing 737 and 18 regional jets Q400 -- were on ground, owing to multiple reasons, as per the aircraft fleet tracking website planespotter.net. SpiceJet has a total of 60 planes, which include 32 Boeing 737 and 24 Q400. Besides, it also has two Airbus 340 and two Airbus A320, which are on wet-lease. | null | null | 2024-07-19 10:51 |
moneycontrol.com | https://www.moneycontrol.com/news/business/vedanta-resources-pays-246-million-dues-to-help-revive-operations-at-zambian-copper-mine-12772555.html | Vedanta Resources pays $246 million dues to help revive operations at Zambian copper mine | Vedanta Resources pays $246 million dues to help revive operations at Zambian copper mine. | UK-based Vedanta Resources, parent of India's Vedanta, has settled dues worth $245.75 million to help revive operations in Konkola copper mines (KCM) in Zambia as part of a deal to take back the mines, the Indian miner said on Friday. The miner, owned by billionaire Anil Agarwal, had in November 2023 regained control of the copper mines and smelter, which the Zambian administration had seized in 2019, but needed to pay creditors of the mines to revive operations. Vedanta Resources gained control of KCM's assets following a five-year legal battle after the former Zambian President Edgar Lungu accused the company of failing to invest to expand copper production and seized its assets. The UK-based company will still need to raise an additional $1 billion to revive the KCM's mining operations and invest in advancing the Konkola deep mining project, which holds one of the richest copper deposits in the world, as per a Reuters report from early July. The Zambian government owns a 20% stake in KCM through ZCCM, a mining investment company, while Vedanta Resources owns the rest. Last month, Anil Agarwal said Vedanta Resources is looking to reduce its debt by $3 billion over the next three years, as the company grapples with mounting debt and a host of rating downgrades since last year. | null | null | 2024-07-19 09:51 |
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